Mobile Data Revenue Will Double in Spain's Telecom Market by 2014

Despite Spain's pronounced economic slowdown, its telecom market will see mobile data revenue double within the next five years, driven by an uninterrupted expansion of mobile data and Internet-based services, according to a report from Pyramid Research.

The Spanish telecom market generated US$42.9 billion in 2008, accounting for 11.7 percent of the total telecom service revenue generated in 2008 by the 10 largest markets in Western Europe, notes Stela Bokun, analyst at Pyramid Research and author of the report. "While Spain is likely to suffer a more pronounced economic slowdown through the first half of 2010 due to the global economic crisis, it will record higher GDP growth rates through 2014 than most other markets in the region," she says.

Telecom revenue will likewise grow faster, driven by an uninterrupted expansion of mobile data services and Internet-based services. "Mobile data revenue will more than double from $4.1 billion in 2009 to $8.3 billion in 2014," says Bokun. "Mobile data ARPS, which accounted for 15 percent of the total in 2008, will grow considerably over the next five years, accounting for 28 percent of the total ARPS in 2014," she adds.

"Remote connectivity and infotainment service revenues are expected to skyrocket, driven by operators' efforts to boost adoption of advanced data services," Bokun says. "Vodafone, for example, currently offers a 15-day free trial and two months of service free for clients who sign up for its mobile broadband service," she explains. "Similarly, Orange offers all new subscribers the same service at a 60 percent discount for the first three months."

Posted to the site on 19th April 2009