Mobile_OperatorsService Providers

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Author: Phil Kendall
Publication Date: Jun 17 2011
Pages: 4
Report Type: Insight, Word
Service Providers

Mobile Revenue Recovery Hit by Deteriorating Voice Business

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Report Summary:

Global mobile service revenues could not quite sustain the Q4 2010 growth rate into Q1 2011. Despite accelerating growth in mobile data revenues of 19% in Q1 2011, weakness in the voice market cancelled out much of this improvement - a trend that was even more pronounced in developed markets. External factors such as regulatory intervention and ongoing macro-economic challenges are putting voice revenues under pressure, as are the competitive dynamics of low-cost voice in some markets and a broader focus from mobile operators on driving smartphone adoption. Strategy Analytics believes the greater bundling of data plans into core tariffs (in order to push through smartphone connections) is a key factor in the voice revenue decline, with the Q1 results providing an early warning that the revenue uplift from smartphones needs to be managed closely as they become a mass market phenomenon.

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