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Could the iPhone be the new dawn for operators to generate profits?

on 23-12-2007

According to Matthew Key, set to become the new CEO of O2 next month, the Apple iPhone has revolutionised the way UK mobile users handle data. In an article featured in the FT, Mr Key highlights the significant increase in data consumption witnessed from iPhone users versus standard O2 users, suggesting operators could have finally found the solution they've been looking for so long: how to convince mobile users to transfer much more data on a regular basis.

Here's a very interesting statistic. According to Mr Key, 60% of UK Apple iPhone users on O2 send or receive over 25 megabytes of data per month. That equates to over 7,500 emails without attachements or 25 standard YouTube videos! Does that seem a lot to us? Well, if you consider that according to Mr Key, only 2% of O2 mobile phone users consume this much data per month, you can imagine the executives of O2 rubbing their hands with glee!

After years of trying to find a solution to poor data connections and weak mobile phone formats for viewing videos and listening to music, it's like a key has finally unlocked a new world of possibilities in terms of potential revenues for operators. Is it really surprising considering how great the iPhone is to enjoy multimedia? Of course, this wouldn't be the case without Wi-Fi, given the well-known weaknesses of 2G... Who knows, if one day Apple sort that out and release a 3G enabled iPhone, you can imagine people sending and receiving a serious amount of data... Watch this space!

To read the full story, visit FT's website.

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