The mobile voice market recorded its largest annual decline in Q1 2011, according to the latest report from Strategy Analytics.
The report, ‘Wireless Operator Performance Benchmarking, Q1 2011,’ said that the rate of growth in mobile service revenues declined last quarter when voice revenues dropped by nearly 3%.
Service Provider Analysis at Strategy Analytics director Sue Rudd said for mobile operators, the Mobile Internet is the new engine for revenue growth, but it comes with a challenging impact on resources.
Rudd added, "While operators are still early in the cycle of managing and optimizing those loads, smartphones and tablets are joining USB modems to put huge strains on mobile network capacity."
Strategy Analytics Wireless Operator Strategies (WOS) research, which tracks the operational and financial performance of over 200 mobile operators, accounting for over 75% of global subscribers, found that non-messaging data services contributed all of the growth in mobile data revenues and now represent over 61% of the total.
Wireless Operator Strategies director and author of the report Phil Kendalland said, "Mobile operators need to remain vigilant in balancing voice, SMS and data pricing to maximize revenues and maintain profitability. The very growth in data revenues, coming from smartphones with bundled voice and data plans, undermines some of the value in the voice market. Operators must tread cautiously in order to avoid chasing smartphone growth at any price."
