Skip to main content

The End of Growth for Mobile Voice Services

We knew that the day would eventually come when the mobile phone service growth engine would run out of fuel. Well, that day is coming soon. Mobile voice service revenues are on a trajectory to reach their peak in 2010, after which they are likely to start declining, according to the latest market study by ABI Research.

Vice-president for forecasting Jake Saunders comments, "Mobile voice has had a meteoric rise since digital cellular networks such as GSM were deployed in 1992. We forecast annual mobile voice revenues to reach $580 billion in 2010. From 2011 on, rising subscriber saturation will increasingly erode mobile voice revenues, not just in developed markets but also in a number of emerging markets."

By 2014, mobile voice revenues will have contracted by 9.6 percent.

While mobile operators have received a substantial boost from value-added services such as messaging and Mobile Internet, competition is squeezing margins for a variety of services and carriers. Total mobile data services should generate $169 million in 2009 and will grow at a CAGR of 9 percent until 2014.

By the end of 2009 the declines in annual average revenue per user (ARPU) will have been felt most severely in Asia-Pacific (-8.7 percent to $105) and Africa (-7.8 percent to $134). ARPU in 2009 in North America will have contracted, but only by -0.6 percent to $526). Mobile Internet revenue ($52) from use of smartphones, netbooks and other devices will help to prop up overall service revenue for the region.

Wireless capital expenditure, on the other hand, shrank 5 percent in 2009 to $132.5 billion. The global recession was widely felt in all parts of the world.

Saunders notes, "As handset sales plummeted in 4Q-2009, end-users did not return their handsets nor did they put their handsets aside and refuse to use them. They did, however, try to cap tariff plan usage. Carriers therefore held up a number of CAPEX-related projects to free up some cashflow."

As the economy has stabilized in 2H-2009, wireless carriers have started to resume capital expenditure. Key areas of spending are core network and radio access network upgrades to support higher data throughput.

Popular posts from this blog

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

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

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic