Mobile broadband to push mobile services to $976 bn

CALIFORNIA, USA: Globally, the mobile services market is forecast to grow to $976 billion by 2016, with the bulk of the growth coming from mobile broadband services, finds research firm Infonetics Research.

Mobile data (text messaging, multimedia messaging, and mobile broadband) service revenue rose in every region in 2011, driven by an increase in smartphone usage.

The mobile world is undeniably shifting from voice to data, as mobile operators migrate as many subscribers as they can to data service plans and smartphones. Already in North America and Asia Pacific, mobile operators derive over 40 per cent of their mobile revenue from mobile broadband and messaging, .

In its latest 2G, 3G, 4G (LTE) Services and Subscribers: Voice, SMS/MMS, and Broadband report, the research firms finds that on a global basis, Infonetics expects operators to see a 6% increase overall in revenue from mobile voice, mobile broadband, and mobile messaging services in 2012.

Stéphane Téral, principal analyst, mobile infrastructure and carrier economics, Infonetics Research, says: "However, while mobile broadband is no doubt the fastest growing revenue stream for operators, mobile messaging and voice aren't dead just yet, not by a long shot."

The highest growth in 2012 will come from Asia Pacific and Latin America, while the EMEA region is expected to see a slight decline due to cutthroat competition and economic turmoil.

At more than a quarter trillion dollars in 2011, Asia Pacific generates the largest portion of mobile service revenue.

Voice revenue dipped 0.8 per cent worldwide in 2011, despite the growing use of voice services in China. Mobile broadband subscribers will grow from 15 per cent to nearly 40 per cent of all mobile subscribers between 2011 and 2016.

"The prophecies of doom for mobile operators' SMS/MMS cash cow are being overplayed. Despite the popularity of over-the-top messaging applications like Apple's iMessage and WhatsApp, our data shows SMS growing every year from 2012 to 2016, delivering a cumulative $1 trillion in operator revenue during those 5 years. And over that same period, voice revenue will decline only slightly, still making up a sizable chunk of operator revenues," adds Téral.