Monday, May 30, 2016

Mobile Data Now Drives 73% of U.S. Mobile Service Provider Revenue

U.S. mobile service provider data revenues increased by 17 percent from 2014 to 2015 and now contribute 73 percent of overall service revenues, according to analyst Chetan Sharma.

Service revenue, postpaid revenue, overall and postpaid ARPU all declined, Sharma says.

U.S. mobile data services revenues in the fourth quarter of 2015 increased two percent sequentially and 17 percent, year over year.

Verizon and AT&T between them accounted  for 69 percent of the mobile data services revenue and had 67 percent of the subscription base, Sharma says.

AT&T continues to add more connected cars than rest of the operators combined, Sharma says. The operator is optimizing its business around profits and one impact is a decline in postpaid phone net-adds for the sixth straight quarter, as AT&T essentially sheds lower-value accounts to competitors such as T-Mobile US, some would argue.

Verizon’s Internet of Things and telematics businesses accounted for $195 million in first quarter 2016 revenue and is likely to cross the $1 billion mark in 2016, Sharma says.

The point is that the U.S. mobile ecosystem now is much broader than “mobile service providers,” though, including all firms generating revenue from mobile apps, devices, operating systems and access.

In 2015, U.S. mobile service provider voice revenues dropped 24 percent, year over year, generally replaced by “access” revenues that often provide unlimited domestic calling and texting as part of the network access fee.




No comments:

Post a Comment

Is Sora an "iPhone Moment?"

Sora is OpenAI’s new cutting-edge and possibly disruptive AI model that can generate realistic videos based on textual descriptions.  Perhap...