Data Consumption Grows 100 Times, Access Revenue Doubles
One clear danger for mobile service providers is the gap between increased investment in network capacity and revenue earned when supplying that additional capacity. By some estimates, as data consumption grows 100 times, revenue merely doubles.
Unlimited data plans do not help, either, since, by definition, such plans do not allow incremental revenue to be earned when incremental usage happens.
Consumption of video is a prime driver of increased consumption and therefore a driver of network investment. Not only does video drive overall traffic consumption, but video standards are pushing to high-definition and ultra-definition versions that consume even more bandwidth than standard-definition video.