Skip to main content

Recession-Proof Mobile Phone Services

Due to the global economic crisis, there's been a recalibration of consumer purchasing and usage behaviors which will affect all industries -- including the normally recession-proof mobile phone services industry.

Yet despite these market uncertainties, a new ABI Research study shows that even under the worst recovery scenarios, mobile services revenues will continue to grow at nearly 1.2 percent through 2014 -- a 0.5 percent loss over pre-crisis conditions.

According to ABI practice director Dan Shey, "A long economic recovery places pressures on mobile operators to compete on price, particularly with undifferentiated voice services. Mobile data services allow operators to counter that pressure. However each region is different."

Operators should create strategies that lead customers to maintain nice-to-have data services or encourage addition of more utilitarian ones.

Economically, North America has been hit hardest. But mobile data services growth will exceed 8 percent through 2014 even in the worst recovery scenario and will shield mobile services revenues against growing voice pricing pressures.

While stimulus packages are helping power the Asia-Pacific region through the financial crisis and limiting unemployment loss, regional operators derive a large portion of their data revenues from content downloads.

These products would be the first casualties of an extended recession, particularly with APAC's substantial prepay base. But operators can mitigate the impacts of the depressed conditions through appropriate messaging and offer management.

According to Shey, "Mobile operators need to stress the utility of mobile services and pursue appropriate services personalization initiatives that allow customers to buy and use services in ways that best suit their needs."

Business customers should also be a target segment as businesses consider mobile a way to lower communications cost and increase competitiveness.

Popular posts from this blog

How AI Reshapes a $360 Billion Foundry Market

Few technology sectors sit as close to the center of gravity in today's artificial intelligence (AI) economy as semiconductor manufacturing. Every AI chip that trains a frontier model, every GPU that powers a data center inference workload, and every power management IC that keeps hyperscaler facilities running traces its origins back to the global Foundry ecosystem. IDC's latest market study throws that reality into sharp relief, projecting that the broadly defined Foundry 2.0 market will surpass $360 billion in 2026, a 17 percent year-over-year gain that would have seemed optimistic even two years ago. For anyone advising boards or investment committees on technology and AI infrastructure strategy, this growth trajectory demands careful consideration. Foundry 2.0 Market Development The umbrella term covers four distinct verticals: pure-play foundry, non-memory integrated device manufacturer (IDM) production, outsourced semiconductor assembly and test (OSAT), and photomask fab...