Boston, MA - October 6, 2005 - Strategy Analytics, the global research and consulting company, reports that average margins per user (AMPUs) in Central and Eastern Europe fell almost 30 percent to just $6 per month in 2Q 2005. Operators in the region are losing ground with AMPU levels 50 percent below the global average in the current quarter, according to the newly released report, "Wireless Operator Benchmarking Report Q2 2005."

The quarterly report provides a health check for the wireless operator community, tracking the operational and financial performance of 61 individual operators, accounting for more than 60 percent of global wireless subscribers. Global AMPUs were down 10 percent to $12 per subscriber per month in Q2 2005.

"On face value, the rapid fall in the value of new subscribers in Russia and the Ukraine is a cause for concern, although underlying profitability remains strong," explained Sara Harris, Senior Industry Analyst at Strategy Analytics and the author of the report. "Exceptional subscriber growth in those countries is driving strong EBITDA growth, ranging from 19 percent at MTS to 55 percent at Vimpelcom. This is still a lucrative region for global operators."

Kerr, Vice President of the Global Wireless Practice, added, "By contrast, EBITDA growth was 10 percent in North America and a meager 2 percent in Western Europe. Following more than three years of growth, AMPUs have posted annual declines for the last three quarters in Western Europe and there is no return to growth in sight. Regulatory pressure on interconnect rates, sluggish data ARPUs, and an increasingly competitive market driven by limited subscriber growth, MVNO activity and 3G launches, are all taking their toll on financial stability in the region."