Feeds

Data will save mobile operators – report

Revenue hike

  • alert
  • submit to reddit

Eight steps to building an HP BladeSystem

Mobile operators around the world will be spared from declining revenues thanks to increased use of data services, says the Yankee Group.

Over the next four years, the number of mobile phone subscribers globally will grow almost nine per cent, exceeding 1.75 billion, the analyst firm estimates.

But since the new customers are likely to use their phones far less than existing subscribers, ARPU (average revenue per user) will fall, argues Yankee analyst Wally Swain.

In fact, overall voice revenues could plunge as well, despite the increased number of users, partly due to competitive pressures that will force the cost of calls down, he says.

But revenues from data services -- such as SMS, MMS, e-mail, remote corporate access, Internet access and games --will buoy ARPU and overall mobile operator revenues, the Yankee Group says in its report, Data ARPUs Save the Day for Wireless Operators.

Global wireless service revenue will grow nine per cent, on average, to 2007. However, growth will vary from region to region and will be lowest in North America, where revenues will climb only five per cent. In the EMEA region there will be a mere seven per cent lift over the next four years.

Latin American growth should be over 10 per cent, however, behind the Asia Pacific region, which will record near 15 per cent growth in mobile operator service revenues. That region's growth will be fuelled by China, which should see a 20 per cent hike in revenues over the period.

Such assertions are sure to warm the hearts of the CEOs running mobile telecoms, who for years have insisted that data services are the big growth area as voice revenues stagnate.

In Ireland, for example, such trends are already afoot, with mobile operator O2 Ireland claiming to derive more tha 16 per cent of its service revenue from data. Group-wide, the company brings in about 19 per cent of revenue from data, only slightly behind its target of 25 per cent by the end of 2004.

The higher data spend is credited with boosting O2 Ireland's ARPU in its most recent quarter to €545 per year, up from €537 in the same quarter a year earlier. Vodafone Ireland, which is somewhat more tight-lipped about where its revenues come from, said that its ARPU is now at €565, up from €523 last year.

Swain said that the popularity of data services tends to grow with the launch of 2.5G (GPRS) networks, which often come with new applications for all types of subscribers. "Not only will business use of wireless data for enterprise applications increase, but consumers also will find new sources of entertainment and information," Swain said. In Ireland, O2 and Vodafone launched their GPRS services in early 2002.

© ENN

Related research

Mobile Consumer Update; data data data" (Datamonitor)

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.