Mar 26 2009 10:37PM GMT
Posted by: Kate Gerwig
Telecom, wireless broadband, ARPU, wireless operators, broadband, handsets
Mobile broadband forecast: There’s no joy in ARPU
Posted by: Kate Gerwig
Telecom, wireless broadband, ARPU, wireless operators, broadband, handsets
The good news, according to global consulting firm Ovum, may be that users accessing mobile broadband-enabled laptops and handsets will increase revenue by more than 450% in 2014 compared to 2008. Mobile broadband adoption, of course, means 3G and 4G mobile data technology adoption. Projected revenue? $137 billion globally.
But wait, there’s a downside. Mobile broadband growth refers to increases in the number of users and the amount of data traffic. But the joy doesn’t spread to average revenue per user (ARPU), Ovum says. Instead wireless ARPU is expected to drop significantly during mobile broadband’s meteoric rise, with projected growth of only 44% of the rate of total users — a dilemma also faced by wireline network carriers.
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