Why the mobile phone boom isn't over yet

By Author Charlie Gibson Feb 08, 2006

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If you think the mobile-phone market is saturated, think again. According to research by Nokia, it is set almost to double by 2010, with the number of handset holders rising from 1.6 billion worldwide to three billion.

At the heart of this growth, says Andy Macdonald in Shares, will be the adoption of 3G technology, the expansion of data services and “the continuing advancement that has already made most mobiles capable of doing so much more than just receiving phone calls”.

In time, this capability could lead us to banking, gaming, playing music and even watching TV on our mobiles. There is also “growing convergence” between various communication protocols, such as text and multi-media messaging, WAP, internet, voice, and e-mail.

Screening the market for Aim-listed telecoms with “exciting top-line growth underpinned by decent cash flows” yielded five firms, with Lancashire-based 2 Ergo (RGO:AIM, 193p) coming out as the “pick of the bunch”. 2 Ergo uses its widely lauded “best-in-sector” Multiserve platform to facilitate “communications and integration between firms and their staff, or customers using mobile internet, SMS, MMS, web and voice applications”. Its shares, according to analysts, are expected to “tip 232p each” – 20% above current levels.

The other four companies identified by Shares were SMS aggregation firm WIN (WNN:AIM, 280p), services technology specialist Bango (BGO:AIM, 203p), ringtone and games designer Monstermob (MOB:AIM, 396p) and call termination firm Spiritel (STP:AIM, 8p). Additionally, a poll of analysts highlighted Blue Star Mobile Group (BTR:AIM, 17p) as “another play worth a punt”.

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Published in Tips & advice | More articles by Charlie Gibson

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