As the wireless market matures and voice services become more of a commodity, the competitive landscape among U.S. wireless carriers is rapidly evolving. In a new study of the U.S. wireless services market, IDC found that U.S. wireless carriers generated US$1.6 billion in data service and application revenues in 4Q04 from a base of 178.2 million subscribers and customers.
Data services and applications are essential to slowing or reversing the slide in average revenue per unit (ARPU) associated with the voice side of the business - and while data represented some 5.8% of industry-wide ARPU in 4Q04, IDC anticipates it will grow to better than 15% of total service revenues in the years ahead. IDC's comparison of data services and applications currently supported by the 5 major U.S. wireless carriers is divided into three broad categories: messaging, content and application downloads, and other services and content.
"Messaging led the way at around 50% of total revenues in 4Q04, although as an overall percentage of revenues it is declining. While Cingular Wireless took top honors in several key metrics, principally due to its larger subscriber base, Verizon Wireless also had a particularly strong showing in the content and application download category. However, Sprint PCS is hands down the market leader in terms of data spending on a per subscriber per month basis," said Lewis Ward, senior research analyst of IDC's Wireless and Mobile Communications program."
Posted to the site on 3rd May 2005
Posted to: www.cellular-news.com/story/12730.php