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ABI Research: ARPUs continue to fall around the world as mobile voice usage nears saturation

Categories: Research
By: , IntoMobile
Thursday, March 4th, 2010 at 1:27 PM

According the new ABI Research study, mobile end-user ARPUs dropped between 6% to 9% globally in the third quarter (year on year) of 2009. Some key figures:

  • India, which is the world’s second largest market in terms of number of subscribers, saw an even steeper decline of 10% in the same period.
  • Europe’s ARPU fell 5-8%, with Austria seeing a contraction of more than 9%.
  • Growth in minutes has peaked and is expected to grow at a CAGR of only 1.4% between 2009 and 2015, with most of the growth coming from developing markets in Africa, Asia, and the Middle East.

The research company also noted that ARPU decline is likely to flatten out as mobile data revenue increasingly replaces falling voice revenue. “Mobile data traffic has exploded in the past two years, and is expected to expand at a compound annual growth rate (CAGR) of over 40% from 2009-2015. Operators can cash in on this demand by enlarging their mobile broadband coverage, thus increasing their user-base. This has started to happen in developed markets such as the UK and US, where mobile Internet service revenues have grown over 12% and 8% YoY respectively,” said analyst Bhavya Khanna.

And you can get additional information from ABI’s full report titled “Mobile Subscriber ARPU, Voice, Messaging, and Data Traffic Forecasts.”

About The Author

Dusan Belic

Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.