Strategy Analytics: Surging Mobile Data Revenues Paint Over Cracks in Voice Market

Wireless News
06-27-2011
Strategy Analytics: Surging Mobile Data Revenues Paint Over Cracks in Voice Market
Type: News

While mobile data revenues accelerated on the back of growing smartphone adoption, the mobile voice market recorded its largest annual decline in the first quarter of 2011.

According to the latest report from Strategy Analytics, "Wireless Operator Performance Benchmarking, Q1 2011," the rate of growth in mobile service revenues faltered last quarter when voice revenues dropped by nearly 3 percent.
Strategy Analytics Wireless Operator Strategies (WOS) research, which tracks the operational and financial performance of over 200 mobile operators, accounting for over 75 percent of global subscribers, found that non-messaging data services contributed all of the growth in mobile data revenues and now represent over 61 percent of the total.

"For mobile operators, the Mobile Internet is the new engine for revenue growth. But it comes with a challenging impact on resources," said Sue Rudd, Director of Service Provider Analysis at Strategy Analytics. "While operators are still early in the cycle of managing and optimizing those loads, smartphones and tablets are joining USB modems to put huge strains on mobile network capacity."

Phil Kendall, Director, Wireless Operator Strategies, and author of the report, adds, "Mobile operators need to remain vigilant in balancing voice, SMS and data pricing to maximize revenues and maintain profitability. The very growth in data revenues, coming from smartphones with bundled voice and data plans, undermines some of the value in the voice market. Operators must tread cautiously in order to avoid chasing smartphone growth at any price."

Strategy Analytics provides market intelligence focused on opportunities and disruptive forces.

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