Cellular Networks Not Exploiting Voice Traffic Opportunities

Strategy Analytics' latest report has concluded that mobile phone networks have been guilty of compliance in their own downfall by not capitalising on upside voice traffic potential.

Sara Harris, Senior Analyst at Strategy Analytics notes, " In recent years, mobile operators have become starry-eyed at the prospect of data services that would arrest the precipitous slide of their ARPUs. Slowly, however, the realization is beginning to dawn that it is, like Dorothy's heart's desire, right in their own backyards. Unlocking the potential traffic explosion from voice in the home, at work and at play through innovative tariffs represents an opportunity which operators can exploit today while rich media data services will represent a positive medium term revenue stream. "David Kerr, VP Wireless added, "Operators need to encourage landline substitution to increase voice usage. There is a clear opportunity for operators to encroach upon the traditional territory of the fixed-line carriers. In only two countries does the proportion of voice traffic carried over cellular exceed one-third. Even countries with very heavy voice penetration such as Greece and the Netherlands, (70% and 68% respectively), the vast majority of voice traffic is still carried over fixed lines.

The report says that the operators have only just scratched the surface with fledgling initiatives including volume plans, group calling plans, flexible usage plans, and tiered pricing. Creative tariffs and promotions designed to stimulate additional call volumes on postpaid and prepaid plans will separate winners from losers among leading operators.'"

Posted to the site on 30th May 2002