Between 2000 and 2010, Global Internet Users Grew 2-3 Orders of Magnitude, Globally

Growth of global Internet users of about eight percent on 2011 might not sound like too much, given the 2000 to 2010 rates of growth. After all, Internet users in Africa grew 2357 percent between 2000 and 2010. 

In Asia, growth was a more modest 622 percent. And global growth masks much-higher growth rates in some regions and areas. India's 2011 growth rate was 38 percent; Indonesia's growth rate was 22 percent; while in the Philippines Internet users grew 44 percent. 

 

The Mobile VoIP "Problem"

Analysts at Juniper Research now estimate there will be about one billion users of mobile VoIP apps and services by about 2017. 

For some, that is an opportunity, though the magnitude of the opportunity might be questionable. 

For mobile service providers, mobile VoIP is probably more a problem than an opportunity.

"As with Skype on the desktop, only a very small proportion will pay for the service," Juniper Research says.  “Wi-Fi mobile VoIP is potentially the most damaging of all VoIP traffic, as it bypasses the mobile networks altogether."

“We forecast that mobile VoIP over Wi-Fi will cost operators $5 billion globally by 2015,” says Anthony Cox, Juniper Research analyst.

In fact, a recent forecast by Visiongain suggests 2012 mobile VoIP revenues will reach only about $2.5 billion, globally. 

“Many subscriber sign up to an OTT service without ever planning to pay a cent for it, and some industry players do not have a short-term revenue model at all,” says Cox.


Still,  researchers at Analysys have in the past predicted that, as early as 2012, mobile VoIP services would generate revenues of $18.6 billion (EUR15.3 billion) in the United States and $7.3 billion (EUR.6.0 billion) in Western Europe, compared with fixed VoIP revenues of $11.9 (EUR9.8 billion) in the United States and $6.9 billion (EUR5.7 billion) in Western Europe.



It seems doubtful those levels of revenue have been realized, though. In fact, analysts seem to have overestimated the revenue mobile VoIP would represent, rather consistently. 

In fact, though fourth generation networks and Long Term Evolution virtually require that carriers embrace IP-based voice, the business model is less certain, and could "potentially accelerate the decline in overall voice revenues," says Cox.

The question is how fast new and alternate revenue streams, such as advertising or premium features and services, can gain acceptance.

Asia-Pacific Region Will Lead Service Provider Revenue Growth

Though Brazil, Russia, India, China and South Africa have been leading economic and communications adoption growth for much of the past decade, it now appears that those nations are reaching maturity, and that growth of communications services will be lead by a new list of nations in the emerging markets.

Overall, that growth–on a percentage basis–will likely be lead by countries in the Asia-Pacific region, exclusive of China and India.

Globally, emerging markets remain crucial for global telecom service provider growth. IDC predicts that emerging markets will contribute for 53 percent of 2012’s global information and communications technology growth.

And a poll  of 675 global IT and business professionals suggests Indonesia, Vietnam, Qatar and Myanmar are the countries to lead that growth. But Israel, Iraq, Uganda and Cambodia were other countries also viewed as countries where growth could occur.

Notably, just five percent of respondents chose Brazil, Russia, India, China or South Africa as among the nations having the strongest growth, though the so-called BRICS nations have been at the top of global growth lists for some years.

Global Youth Can't Live Without Their Smart Phones

About 90 percent of Gen Y surveyed worldwide said they check their smart phones for updates in email, texts and social media sites, often before they get out of bed, according to the 2012 Cisco Connected World Technology Report. 

Global youth are remarkably consistent in those attitudes, as it turns out. 

FCC Approves Dish Network Long Term Evolution Plan

Federal Communications Commission members unanimously approved a plan to allow Dish Network Corp. to re-use its mobile satellite spectrum to build a new Long Term Evolution mobile network, one more example of how the U.S. mobile market is being challenged. 

All five FCC members have voted on the rules. Dish is required to build out at least 70 percent of the new network within six years, and will have to reserve some of its spectrum as a guard band to prevent interference with other licensed users, a problem LightSquared encountered as well. 

Dish has said that provision would be a "game changer" for Dish that would make the proposed LTE network "risky." 

Some observers have argued all along that Dish would simply sell its spectrum at some point, and not bother getting into the mobile business. Others are not so sure, given Dish's largely saturated video entertainment business and CEO Charlie Ergen's comments that, if he had to do it all over again, he might not choose satellite delivery as his way of attacking the video entertainment market. 

FreedomPop Launches Wireless Fixed Service

FreedomPop, which already has launched its mobile broadband service, now is launching a "fixed" service offering 1 Gbytes of free data in nearly all of the the 80 largest urban markets across the United States. 

Orders for the new modems will be filled in January 2013, it appears. 

The services requires a refundable $89 deposit that covers the cost of the modem. 

FreedomPop is trying to disrupt U.S. broadband pricing, and in addition to the free allotment of 1 Gbyte, compared to the free 500 Mbytes offered with the mobile version of the plan. 

If early reports are correct, the fixed service will offer perhaps shocking prices of 10 Gbytes for $10 a month. Users who are comfortable with speeds that some will compared to lower-speed digital subscriber line, and who do not watch lots of video, might find that a very-attractive offer.

The mobile service features higher tariffs, as typically is the case for mobile broadband. A 2-Gbyte plan would cost $17.99 per month. After that, each additional 1MB costs just $0.01 (which works out to $10 per 1GB). 

That works out to about $28.99 per month for 4GB of data, $34.99 for 5GB and $59.99 for 10GB, all with the same $0.01 charge for each additional megabyte you go over your plan. Most users will consider that a mild overage charge, indeed. 

What Percentage of U.S. Household Income Does Apple Get?

In 2011, the average amount U.S. households spent on Apple products was $444, according to Morgan Stanley analyst Katy Huberty, Reuters reports. Some might find that a "large" number, while others might consider it a rather small percentage of total spending. What is clear is that "average" households are spending more on Apple products.

In 2010 the "average" household spent $295 on Apple products. Back in 2007, U.S. households spent  $150. If you assume median U.S. household income of $50,054, that suggests some households are spending a modest amount on Apple products, about 0.9 percent of household income. 

Compare that with other spending percentages, based on an average American household income of $63,000.

Dry cleaning, storage of clothing, rental of clothing, jewelry and watch repair represent 0.5 percent of spending.

Tobacco products might represent about 0.8 percent. 

Entertainment, including such items as sports equipment, photographic equipment and supplies, hunting and fishing equipment, bikes, boats, balls and other sports equipment, might represent . 0.8 percent. 

Alcoholic beverages might consumer about 0.9 percent of income. Admission fees constitute about 1.3 percent of income. Vacation lodging represents 1.4 percent of income.

Spending on hobbies, toys and pets takes about 1.4 percent of income, while television, radio and audio equipment, cable TV subscriptions claims two percent of income.
Gifts represent 2.2 percent of income. 

Some might say U.S. residents spend "too much" on Apple products, but that is a subjective call. Looking at the other common spending categories, one could easily argue that purchases of Apple products are not uncommonly high, and that there are lots of other places spending might be shifted to account for Apple spending.