Mobile Internet Access Will Drive 45% of Total Mobile Operator Revenue in 2014

Mobile Internet access will drive global 45 percent of total mobile service revenue in 2014, according to ABI Research. In the first quarter of 2014, global mobile service revenue increased 0.58 percent year over year to US$264 billion.

Service revenue for 2014 will grow three percent to US$1.01 trillion, mainly driven by the robust growth of the mobile Internet market, ABI Research says.

The proportion of Internet access instances originating from mobile devices will vastly outnumber fixed network access, including both fixed networks and Wi-Fi, by 2018, Cisco now forecasts.

It is likely that fixed networks still will represent an order of magnitude more total data throughput than mobile networks do, by 2018, according to Ericsson.

By 2018, there will be more than 10 billion mobile-ready devices and connections, about three billion more than there were in 2013, and about five billion global mobile users, up from more than four billion in 2013. Ericsson predicts.

The one region with a revenue issue is Western Europe. Despite global service revenue growth, the Western European market is declining. In the first quarter of 2014 mobile service revenue declined five percent, year over year, despite Internet access revenue growth.

According to ABI Research’s Market Data, the major European carriers such as Vodafone, Telefonica, T-Mobile, and Orange all suffered from gross profit decreases in the first quarter of  2014, whereas in North America mobile carriers are still demonstrating a positive outlook for gross profit.

“Facing continued price pressure driven by the competitive mobile market, mobile carriers have had to take on higher subscriber retention and acquisition costs to support their market positions. This has affected profitability,” said Marina Lu, ABI Research research analyst.  
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