There are growing signs that the mobile service provider business is facing a structural slowdown in Western Europe. Researchers at Analysys Mason, for example, say Western Europe's fixed network and mobile service providers now see declining revenue.
Consumers also are allocating a smaller percentage of their incomes to communications services.
Separately, STL Partners reports that the mobile industry’s combined revenues from voice, messaging and data services in the United Kingdom, France, Germany, Spain and Italy will drop by nearly 20 billion Euros, or four percent per year, in the next five years, and by 30 billion Euros by 2020. says.
There is a reason to suspect that use of over the top applications for voice and messaging have something to do with the declines. That is at least partly true.
More than 45 percent of customers with a smart phone use some form of instant messaging or over-the-top (OTT) messaging app in addition to (and in some cases instead of) traditional text messaging (SMS), according to Analysys Mason. The data was collected from more than 1000 smartphone users in France, Germany, Spain, the United Kingdom and the United States.
In addition, 20 percent of consumers use a VoIP app, and 20 percent of those consumers use it more than traditional voice services.
About 20 percent of the respondents ussed the “WhatsApp Messenger” at some point over the 60 days of usage that were tracked as part of the story.
But it would appear that many users make very light use of over the top voice or messaging, and very few consumers have abandoned carrier voice and messaging completely. Just 1.7 percent of the panel used IM or OTT messaging without using carrier text messaging at all.
And Analysys Mason says that only 16 percent of all panelists in the study use VoIP apps at all. The perhaps unwelcome implication is not that carrier services are suffering from a shift of demand to rival services, but that a possibly more worrisome trend is developing, namely that people are simply choosing to use mobile services less than they have in the past.
Thursday, October 11, 2012
Mobile Revenue is Slowing in Western Europe, But Why?
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
Directv-Dish Merger Fails
Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
No comments:
Post a Comment