All about Me…

Internet Will Save Wireless Carriers…

Posted by vishalsinghal on August 12, 2008

Yes, Internet will indeed save Wireless Carriers. You must be thinking as to what in the world I m talking about…but web browsing is increasing over wireless devices across the world. Some insights:

Man with Mobile phone in Asia

Man with Mobile phone in Asia

  • Web/info access generates $2.7 billion of data revenue (32%) (Source: CTIA Semi-Annual Wireless Survey)
  • Active Users Increasing, Strong Revenue Generation Despite Price Erosion.

A report out from Chetan Sharma Consulting proves that data is the big story when it comes to wireless operators in the United States.

Driven by flat-rate plans, increasing 3G coverage and the iPhone, data spending reached $8.2 billion for the second quarter of 2008, or about 21 percent of the total wireless services revenue. The boost in wireless services increased average revenue per user by 5 percent to 50 cents, offsetting a 5-cent decline in voice ARPU.

Verizon, which leads U.S. wireless operators with its 60 percent 3G subscriber penetration, saw the most growth in 3G usage and the most data revenue — $2.6 billion for the quarter. However, AT&T, the exclusive provider to the Internet-friendly iPhone, had only 25 percent 3G subscriber penetration but also saw its data sales come close to Verizon’s at $2.5 billion, proving that the Internet on the phone is a powerful driver of data revenue.

FemtoCell concept also involves use of Internet for decongestion of networks.

All of the above points thus prove that Wireless and Internet will co-exist and be dependent on each other

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