Mobile Internet Driving Service Revenues, Contributes 31% Globally in 1Q 2014

In ABI Research’s profitability analysis, Verizon Wireless beat China Mobile for the first time

ABI Research

SINGAPORE - ​In 1Q 2014, the worldwide mobile service revenue increased 0.58% year-on-year (YoY) to US$264 billion according to ABI Research, and the aggregate service revenue for 2014 will grow 2.9% YoY to US$1.01 trillion, mainly driven by the robust growth of the mobile Internet market. Proliferating mobile data subscriptions and enhanced network capacity will drive global mobile Internet service revenue to US$456.7 billion by 2019—44.7% of total mobile service revenue. Despite global service revenue growth, the Western European market is declining: 1Q 2014 service revenue declined 5.2% YoY.

“Facing continued price pressure driven by the competitive mobile market, mobile carriers have had to take on higher subscriber retention and acquisition costs to support their market positions. This has affected profitability,” commented Marina Lu, research analyst at ABI Research. According to ABI Research’s Market Data, the major European carriers such as Vodafone, Telefónica, T-Mobile, and Orange all suffered from gross profit decreases in 1Q 2014, whereas in North America mobile carriers are still demonstrating a positive outlook for gross profit.

In ABI Research’s profitability analysis, Verizon Wireless beat China Mobile for the first time, carrying the top position for most profitable mobile carrier in aggregate for 1Q 2014, followed by China Mobile and AT&T respectively. Strong growth in retail postpaid subscribers, increased smartphone customer base, enhanced 4G LTE smartphone line-up, and attractive pricing plans have contributed to Verizon’s profitability. In addition, Verizon also moved up one position to second in the ranking for quarterly gross profit per subscriber, at US$77.1.

There is no doubt that fast-growing mobile data consumption has helped to mitigate the declining voice and messaging ARPU trend. “Japan and South Korea mobile operators have spared no effort to boost mobile data usage, expecting monthly data traffic per wireless subscriber will reach 12 Gigabytes in 2019,” noted Jake Saunders, VP and practice director, core forecasting. “Global mobile data traffic will reach 260.8 Exabytes by 2019, nearly a six-fold increase on 2014.”

The “Mobile Carrier and Revenue” and “Mobile Data Traffic & Usage” Market Data provide a robust source of financial and operational benchmarks for regional and mobile carrier analysis. These findings are part of ABI Research’s Mobile Deployments, CAPEX, and Traffic Market Research.

ArticleTools

Featured Reports

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.

 

Cable Carrier Wi-Fi: MSO Take MNO Market Share
How does a cable provider gain a bigger piece of the telecom market pie chart? With a clever Wi-Fi strategy, cable providers are in a unique position to dominate the residential and business telecommunications markets. This is the portent of things to come in the very near future: an MSO as MNO play.

 

Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.

 

Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

Featured Events & Partners

The Telecom Exchange (TEX)
Wednesday, June 24, 2015

Cipriani Wall Street, New York City

Designed to navigate enterprise and carrier network operators through all carrier hotels and colocation houses available in the US and globally.

Visit event website...