Infonetics Research: Mobile Operators Feeling Pressure from OTT and Free Services

  Infonetics Research: Mobile Operators Feeling Pressure from OTT and Free
  Services

Business Wire

CAMPBELL, Calif. -- December 20, 2012

Market research firm Infonetics Research released excerpts from its 2G, 3G, 4G
(LTE) Services and Subscribers: Voice, SMS/MMS, and Broadband  market size and
forecasts report, which tracks mobile services revenue, mobile voice and data
average revenue per user (ARPU), and mobile voice and broadband subscribers.

“As we approach mobile saturation, the mobile industry is undeniably shifting
from voice to data, and over-the-top voice revenue is shifting away from
mobile operators,” notes Stéphane Téral, principal analyst for mobile
infrastructure and carrier economics at Infonetics Research. “SMS use is
fading in places like Japan, the US, the Netherlands, and the UK in favor of
free applications over mobile broadband that enable internet browsing, email
and, more importantly, video. Those services may be free to subscribers, but
handling the traffic is not free to the network operators.”

Téral adds: “Service providers are spending billions of dollars to upgrade
their networks to handle the skyrocketing traffic; if they don’t, they face
network outages and subscriber turnover. They’re all looking for cost savings
and efficiencies. But it comes down to subscribers either being willing to pay
a fair price for the services provided or not.”

MOBILE SERVICES MARKET HIGHLIGHTS

  *Mobile service revenue is increasing year-over-year but the growth rate is
    decreasing and in some cases not keeping pace with network operator
    capital expenditures (capex)
  *Despite the rise of revenue from mobile data services, blended ARPU
    continues to fall or stay flat due to fierce competition, declining voice
    ARPU, and regulatory tariffs
  *Mobile broadband services are growing fastest, with global revenue on
    track to nearly double between 2012 and 2016
  *Revenue from services carried on W-CDMA/HSPA networks will exceed revenue
    from CDMA2000/EV-DO-based services by more than 6-fold by 2016
  *Thanks to its aggressive LTE strategy, Verizon Wireless now accounts for
    just over 1/3 of the world’s 44 million LTE subscribers
  *Asia Pacific is home to around 45% of the world’s 1.1 billion mobile
    broadband subscribers
  *Mobile broadband subscribers are expected to surpass contract voice
    subscribers by 2015

REPORT SYNOPSIS Infonetics’ biannual mobile services report  provides
worldwide and regional market size, forecasts, analysis, and trends for mobile
broadband, SMS/MMS and voice mobile service revenue, ARPU and subscribers by
network type (W-CDMA/HSPA, CDMA2000/EV-DO, TD-SCDMA, and LTE). The report
features a Mobile Broadband Service Tracker following deployments by country,
technology, and subscribers. To buy the report, contact Infonetics:
http://www.infonetics.com/contact.asp.

UPCOMING INFONETICS WEBCASTS

  *WEBINAR: Scaling Small Cell Backhaul  with Alcatel-Lucent, Ceragon,
    Vitesse (Feb.)
  *WEBINAR: Integrating Carrier WiFi with the Mobile Network with Ruckus
    (Feb.)
  *WEBINAR: Core Routers Move to the Metro with Alcatel-Lucent (Apr.)
  *WEBINAR: SMS/MMS Security Platforms for Mobile Carriers (Sponsorships
    available)
  *WEBINAR: Service Provider SDNs: Here to Stay (Sponsorships available)
  *WEBINAR: Routing vs. Ethernet for LTE Backhaul (Sponsorships available)
  *WEBINAR: Small Cells Reality Check (Sponsorships available)

REPORT HIGHLIGHTS

  *Infonetics Overall Market Trends & Forecasts research brief:
    http://bit.ly/ZgRAGW
  *Operators stepping up equipment spending in 2013, led by Asia; growth
    returns to Europe
  *Telecom growth rate still outpacing GDP growth
  *LTE jumps 30% in Q3, NSN doubles LTE revenue; mobile gear set for growth
    in 2013
  *Operators are deploying SON in LTE and 3G networks alike; name top vendors
  *3G drives femtocell market up 13% in 3Q12; Samsung #1 in revenue and
    shipments
  *Outdoor small cell backhaul a 5-year $5 billion opportunity
  *Japan’s mobile market grows 3-fold on the wings of LTE, China puts 3G
    first
  *A first: Increased ARPU now a top driver for LTE upgrades
  *Small cell is the buzz but DAS is the biz, say operators in latest
    Infonetics survey
  *Femtocells offer opportunity to put the mobile network at the heart of the
    home network

RECENT / UPCOMING RESEARCH Download Infonetics’ market research brochure,
events brochure, publication calendar, report highlights, tables of contents
and more at http://www.infonetics.com/login.

  *Mobile Backhaul Wireline Equipment Vendor Leadership: Global Service
    Survey (Dec. 11)
  *Telecommunications Equipment Vendor Leadership Scorecard (Dec. 18)
  *3G and 4G (LTE, WiMAX) Broadband Devices and Subscribers Market Report
    (Dec. 18)
  *Service Provider Capex, Opex, Revenue, and Subscribers Database (Dec. 19)
  *Small Cell and LTE Backhaul Strategies: Global Service Provider Survey
    (Dec. 21)
  *Multi-Screen TV Service Deployment Strategies: Global Service Provider
    Survey (Dec. 21)
  *Ethernet over Coax (EoC) Equipment and Subscribers in China (Dec. 21)

TO BUY REPORTS, CONTACT:

N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1
408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com,
+1-408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com,
+44-755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

Infonetics Research (www.infonetics.com) is an international market research
and consulting firm serving the communications industry since 1990. A leader
in defining and tracking emerging and established technologies in all world
regions, Infonetics helps clients plan, strategize, and compete effectively.
View Infonetics’ About Us slides at http://bit.ly/QUrbrV.

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Contact:

Infonetics Research
Stéphane Téral, +1-408-583-3371
Principal Analyst, Mobile Infrastructure and Carrier Economics
stephane@infonetics.com