Mobile Operators have to innovate, restrategize and reposition themselves to weather the expected decline in the revenues across major continents in 2018. According to Ovum, a research company that provides independent and objective analysis on telecommunications and technology sectors, global connections will grow by a CAGR of less than 4 percent between 2012 and 2018, while global revenues will grow at less than half that rate. Ovum shares figures on the global mobile connections, revenues and ARPU for the next 5 years and beyond, and also discusses the growth potential in some regions such as Africa and Asia-Pacific in their report, Global Mobile Market Overlook, 2013-2018.
Mobile Operators are already making foray into other service segments, namely the digital services, mobile payments, OTT applications and cloud services and are rolling out newer features on existing services to deliver more value and create service differentiation. Operators are exploring new business models, forging new partnerships and developing future service concepts to remain competitive, without which they risk becoming highly commoditized with increasing cost pressures.
Sara Kaufman, analyst for Industry, Communications and Broadband at Ovum and author of the report, said, “Growth will continue to slow in most markets around the world. When you compare connection and revenue CAGRs, it is clear that mobile operators are facing a new reality: they must do much more with much less. Consolidation will help to alleviate some market pressures and is inevitable in many markets. But the need for revenue stabilization is becoming paramount for a sustainable future.”
According to Kaufman, operators in developed markets face particularly challenging times. Connections in Western Europe will grow by a CAGR of less than 1 percent, while revenues will decline at a CAGR of 1.48 percent. Several other developed markets will see year-on-year revenue declines in 2018, including the US, which will begin to show signs of its maturity.
