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ABI Research: Mobile data usage grows, but not the revenues

August 4, 2010 by Dusan Belic - Leave a Comment

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data access on a mobile phoneMobile data usage continues to grow exponentially as 3G technology spreads globally. From 2009 to 2015, data usage in Western Europe and North America is expected to increase at a CAGR of 42% and 55%, respectively. This year, the average North American user is expected to consume 159 MB of data, which is up from 100 MB in 2009.

The problem, however, is that the increase in mobile data consumption doesn’t correspond to the rise in data revenues for the operator. The reason is simple – many users opt for unlimited or fixed price data plans and that caps revenue even as usage grows. For instance, mobile data revenues are expected to grow at a CAGR of about 18% in North America, presenting a challenge for operators as they look to manage the network demands without a corresponding increase in income.

Voice minutes on the other hand are on the decline in developed markets. In emerging markets, the picture is completely different, leaving room for voice usage growth despite the ever-increasing competition. ABI points to Africa as an example where reduced tariffs resulted in minutes of use per user growing by 9% between 2009 and 2010…

As usual, you can get more information from ABI’s website.

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