Posted by: mobilitycloud | May 10, 2011

U.S. mobile data revenues on pace to reach $67B in 2011

U.S. mobile data revenues on pace to reach $67B in 2011

  May 9, 2011 — 8:44am ET | By Jason Ankeny

The U.S. mobile data market increased 4 percent quarter-over-quarter and 23  percent year-over-year to reach first quarter 2011 revenues of $15.4 billion  according to management advisory firm Chetan Sharma Consulting, which adds that  annual revenues are on pace to reach $67 billion this year–a 22 percent  year-over-year leap.

Data revenue growth is due in part to increasing smartphone penetration:  Chetan Sharma notes that in the first quarter, smartphone sales accounted for  over 50 percent of total U.S. mobile phone sales for the first time, adding that  the nation now contributes roughly one third of all global smartphone sales.  Connected devices like tablets and e-readers also grew 9.6 percent in the first  quarter, and now represent 8 percent of the U.S. subscription base. Chetan  Sharma adds connected devices will command double-digit market share by the end  of the year, bolstered by the introduction of Android-based tablets priced  between $200 and $250.

Looking at the market from an operator-centric perspective, Verizon Wireless  (NYSE:VZ) and  AT&T (NYSE:T) together  accounted for 76 percent of the first quarter’s mobile data revenue  increase–the two carriers generated 69 percent of market data services revenues  in the first quarter, and command 65 percent of the U.S. subscriber base. Chetan  Sharma adds that while T-Mobile USA‘s postpaid net adds remain in the red, the  carrier’s HSPA+ drive is yielding data growth that is beginning to match its  rivals. The firm also notes that the proposed AT&T/T-Mobile USA merger would  make AT&T the world’s number one operator in terms of mobile data  revenues.

Additional first quarter findings and forecasts:

  • Overall ARPU increased by $0.11–average voice ARPU fell $0.36, but average  data ARPU grew by $0.47. The average percentage contribution of data to overall  ARPU was 35 percent in the first quarter of 2011 and is likely to reach 40  percent by year’s end. Chetan Sharma anticipates data revenues will exceed voice  revenues in the U.S. market before the second quarter of 2013.
  • Although messaging’s percentage share of data revenues is slipping, the  category still generated almost $5 billion in revenues during the first  quarter.
  • Smartphones now account for 80 percent of the revenue of all phones sold in  the U.S.

Read more: U.S. mobile data revenues on pace to reach $67B in 2011 – FierceMobileContent


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