Monday, February 17, 2020

How Mobility Drives Industry Growth and Value

With the caveat that the data is about 15 years old, the evolution of end user nodes on communications networks is clear enough. While fixed nodes represent most of the actual data consumption, mobile nodes increasingly drive the subscriptions and user base. 

In this illustration, the blue and purple  lines show fixed network broadband lines. The light blue line shows cable TV broadband lines. 

The lines in yellow show total telco lines of any type. The red lines show mobility customers. 


More recent data through 2012 shows the trends in perhaps clearer perspective. By 2012, fixed line teledensity (lines as a percent of population) remained virtually flat and in the very-low single digits.

Mobile teledensity had climbed up to a bit below 70 percent overall, and hit 40 percent even in rural areas. 


Looking at global data to 2019, mobile internet users had the highest growth rate, while mobile subscriptions flattened. Fixed broadband connections grew slowly, while use of traditional voice lines (narrowband) continued to dip slightly. 

And while each country’s development is different in some ways, the general pattern also is clear. Mobile adoption has been faster than fixed network service adoption. Historically, on average, it has taken any specific country up to 50 years to reach adoption levels near 50 percent. 

In the mobile era, it often takes less than 20 years to reach 50 percent adoption. So the difference between the “best” growth rates and “average” growth rates is mostly dependent on whether we look at mobile services or fixed services. 


No comments:

Directv-Dish Merger Fails

Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...