"Traditionally, telecom operators have focused their attention on maximizing revenues by managing network traffic," said Johan Fagerberg. "Now we have a different breed of players like Google who want to maximize their advertising exposure and revenues by generating as much traffic as possible. This force may prove formidable enough to disrupt the traditional telecom business model by shifting the focus from selling voice minutes to selling advertising space."
According to the report, the greatest challenge facing providers of mobile advertising is the very low consumption of mobile media. Even though Berg Insight estimates that there are close to 100 million mobile Internet users in Europe and North America, the vast majority of those only access mobile media a few times per month. "For the advertising business model to really work there must be a massive surge in usage levels. If mobile media is to take 1 percent of the
