SMS Weblogs / Textually / 2003 / 09 / 30

Data will save mobile operators: report

A report from the Yankee Group claims that mobile operators around the world will be spared from declining revenues thanks to increased use of data services, reports Electricnews.net.

"In its report, "Data ARPUs Save the Day for Wireless Operators," US -based Yankee Group asserts that over the next four years, the number of mobile phone subscribers globally will grow nearly 9 percent, exceeding 1.75 billion. But since the new customers are likely to use their phones far less than existing subscribers, ARPU (Average Revenue Per User) will fall, argued Wally Swain, an analyst with the Yankee Group.

In fact, the Yankee Group claims that overall voice revenues could plunge as well, despite the increased number of users, partly due to competitive pressures that will force the cost of calls down.

But revenues from data services -- such as SMS, MMS, e-mail, remote corporate access, Internet access and games --will buoy ARPU and overall mobile operator revenues, the Yankee Group said."

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