Skip to main content

U.S. Pays More for Mobile Phone Services

During the period 2007-2012, the worldwide mobile subscriber base is expected to increase by 1.8 billion, according to the latest market study by Portio Research.

Around 67 percent of these new subscribers -- a little above 1.2 billion subscribers -- are expected to come from just 10 fast-growing country markets worldwide. Of these top 10 growth markets, nine have been identified as high-volume, low-ARPU (Average-Revenue-Per-User) emerging mobile markets with significant potential in the next five years.

Portio's study identified only one truly wealthy nation among this top 10, the United States of America, home to one of the highest ARPU rates in the world, yet also the 4th biggest growth market of the 2007-2012 period.

The U.S. is expected to add more than 65 million mobile subscribers to the worldwide subscriber base in the period 2007-2012.

This might look relatively insignificant compared to the massive numbers expected to be added from high-growth markets such as China (542 million) and India (282 million), but what makes the U.S. mobile market an interesting market to study is the observation that a new mobile subscriber in the U.S. is expected to generate between three and 13 times as much revenue expected from a new mobile subscriber in China, India and the other emerging markets in the top 10 in 2012.

Translation: by comparison, Americans continue to overpay for their mobile phone service. Meaning, compared to other leading global markets, price competition still remains elusive in the U.S. mobile market -- likewise in the consumer broadband services market at home.

Compounding this aggressive growth is the high ARPU network operators in the U.S. achieve from their subscribers. Unlike many other mature mobile markets, where ARPU is in slow decline, in the U.S. ARPU is forecast to remain high, even increasing slightly from 2007 levels as we move forward over the next 4 or 5 years.

While the U.S. will contribute only around 5.5 percent to the total number of new subscribers that are expected from the top 10 markets in the period 2007-2012, in terms of revenue, the country will account for around 25.2 percent of the total mobile service revenues generated by these 10 markets in 2012.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of