Mobile Service Revenue To Flatten Out in 2015 after Bouyant Growth This Year, LTE Accounts for 9% of Total Revenues

Mobile Service Revenue To Flatten Out in 2015 after Bouyant Growth This Year, LTE Accounts for 9% of Total Revenues Image Credit: Strategy Analytics

Strategy Analytics, a provider of advisory, consulting and market intelligence services, said in the release of its Wireless Operator Strategies (WOS) service report, "Global Mobile Service Revenue to Stagnate at $1 Trillion Mark" that the global mobile service revenue growth will continue its rapid growth this year, hitting the USD1 trillion market in 2015. However, the firm cautioned against a flat growth that is expected to follow after that.

According to Strategy Analytics, the worldwide deployments of 4G LTE contributed to the increased use of data on many operator networks, contributing to the higher revenues recorded this year. Although Europe remains sluggish in the mobile market with a revenue expectation that is 17% less than its 2008 peak, its slight rebound this year contributed to the increase in global mobile services revenue. Strategy Analytics also pointed out to the slowdown in the 3G service revenue as 4G LTE services become more widespread. According to the firm, 4G LTE will account for 9% of global service revenue in 2013 and more than half of the 2018 total. 

"China Mobile's aggressive push on 4G, and the expanding low-cost device ecosystem it is supporting, represents a boost for operators in their attempts to push 4G into more price-sensitive segments. However, while we view 4G LTE as a key part of any mobile operator's revenue growth strategy, it is not in itself sufficient to significantly improve the situation for many."

-        Phil Kendall, Executive Director, Wireless Operator Strategies

"With limited revenue growth potential, subsidy strategies and consolidation opportunities will remain part of the cost containment picture for mobile operators. At the same time, more operators will follow the example of those in Asia, where the quest for revenue growth has focused on services beyond connectivity, such as finance, content and digital lifestyle services."

-        Susan Welsh de Grimaldo, Director, Wireless Operator Strategies

Executive Editor of The Fast Mode | 5G | IoT/M2M | Telecom Strategy | Mobile Data Innovations 

Tara Neal covers stories on strategies and initiatives in the Digital Telco space, and anchors the 5G and IoT/M2M verticals on the publication. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States. Tara has over 20 years experience in technology and business strategy.

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