Dealers rather than operators or retailers will remain the primary source of cellular equipment and air time in Europe over the next five years, despite increasing economic and competitive pressures and a growing role for retailers, finds a new report from consultants BIS Strategic Decisions Ltd. The cellular dealer channel accounted for 971,000 shipments in 10 European countries in 1992 and is forecast to account for 1.43m units in 1997. But the report continues that the desire of network operators and manufacturers to develop the consumer market mean that dealer sales will represent a declining proportion of total end-user sales. Lower equipment prices, special tariffs and increased advertising, all aimed at the consumer, will be supported by the use of consumer distribution channels, such as retailers and non-telecoms dealers. Retailers will come to represent almost 20% of total sales in 1997 compared with just 6% today.
