Thursday, January 7, 2016

Between 2011 and 2016, Revenue per Gigabyte Prices Will Drop 300 Percent

Wi-Fi now has become an important input for mobile operator access cost containment. As usage continues to climb, revenue per gigabyte keeps dropping. 

Offloading traffic allows users to consume lots of data without excessive stress on their data plans.

That offloading also means network capacity investments to cope with usage growth can be delayed longer than otherwise might be the case.

Oddly enough, the bind is real: mobile operators arguably cannot afford to invest enough in their own networks to support all the usage and still have a sustainable business model.

Even if there is some "lost revenue" because users shift to Wi-Fi, and therefore the mobile operator loses usage, the upside is that the operators avoid huge capacity investments.

source: Analysys Mason  

                Average wireless network traffic per connection
Figure 1: Average wireless network traffic per connection, worldwide, 2011–2016 [Source: Analysys Mason, 2011]
source: Analysys Mason

No comments:

Divesting DirecTV Might Cost AT&T 13% or So of Free Cash Flow

A possible move by AT&T to divest DirecTV --a move favored by many financial analysts--could have huge consequences for AT&T’s fre...