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June 3, 2010

Data to constitute 37% of Mobile Networks revenue by 2014: Pyramid

Mobile data revenues will increase at a CAGR of 14.5% between 2010 and 2014, and total revenues to grow at 5.8% CAGR

By CBR Staff Writer

Data will constitute only 37% of total revenue generated by mobile networks, despite the fact that it will account for the vast majority of traffic on mobile networks, according to a new report from Pyramid Research.

The report, Mobile Data Pricing Plans: How Operators Can Escape the All You Can Eat, further added that this illustrates the challenge operators like AT&T are facing to monetize the rising appetite for bandwidth-rich applications.

It analyzes the evolution of pricing for mobile data plans and the impact on subscriber adoption and usage levels, by reviewing the evolution of data plans to date and highlighting the limitations of existing plans, particularly the all you can eat model.

The model has created its own set of challenges such as the significant strain on operator networks and the unlimited monthly plan model, which is related to the ‘massification’ of mobile data services.

Ewa Romaniuk Calkowska, analyst at Pyramid Research and author of the report, noted that the research firm expects mobile data revenues to increase at a CAGR of 14.5% between 2010 and 2014, and total revenues to grow at a mere 5.8% CAGR during the same time period.

Calkowska said: AT&T’s recent announcement that unlimited data plans will no longer be available for its new customers confirms Pyramid Research’s assessment that operators will move away from the unlimited pricing model since it is becoming unsustainable.

The report is part of Pyramid Research’s Global Telecom Insider report series and comprises of case studies of three operators including Orange France, NetCom Norway, and Oi Brazil.

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