Technology | Media | Telecommunications

Wednesday, March 09, 2011

Segmentation of the Mobile Data Demand Drivers

Mobile network service provider data plan revenues will grow at a compound annual growth rate (CAGR) of nearly 9 percent and are expected to exceed $102 billion worldwide by 2016, according to the latest market study by ABI Research.

Regionally, data plan revenue share among different device classes can vary significantly.

As an example, currently in North America, data plans for smartphones deliver the majority of revenue. However in regions lacking fixed line access to the Internet, such as Eastern Europe and Latin America, connections to other computing devices constitute the majority share.

But according to ABI practice director Dan Shey, "By 2016, smartphones will become the largest portion of each region's mobile data plan revenues with over 50 percent share."

Increasing smartphone penetration rates among mobile enterprise customers are major drivers for data plan revenue growth. But connectivity for other devices such as tablets will become increasingly important and contribute significantly to overall connectivity revenues from the business sector.

Data plan growth enables other opportunities for the enterprise sector. More connections mean greater need for applications, and content, security, expense and other mobile device-related services.

Forward-looking mobile network service providers that are targeting the enterprise segment are looking holistically at the opportunities presented by increasing enterprise mobile device connections.