It’s a mobile data world: In 2013 voice stopped being U.S. carriers’ main revenue driver
The fourth quarter was the turning point in which the U.S. mobile industry started making more money off of data than from voice.
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The fourth quarter was the turning point in which the U.S. mobile industry started making more money off of data than from voice.
The vast majority of traffic on mobile operators’ networks is now pure data, but the lion’s share of operators’ revenue comes from voice. Meanwhile even the big data-subscription fees operators are collecting aren’t making up for the decline in voice revenues.
Approximately 90 percent of all tablets in the U.S. relied on Wi-Fi over 3G mobile broadband last year, according to industry analyst Chetan Sharma. The data suggests that carriers aren’t a needed distribution chain for slates for several reasons: long-term contracts and redundant data plans.
Mobile handsets have a bad habit of oversharing with the networks they operate on, with some handsets being chattier than others. This signaling data, as it’s known in the industry, makes managing networks even more challenging, and Traffix wants to help operators handle it.
Mobile data consumption continues to surge, as Chetan Sharma notes in his latest update of the U.S. mobile industry, but data revenues aren’t keeping pace. That explains why AT&T and Verizon — which dominate mobile the mobile data market — are moving toward metered billing.
New devices, app stores and rising mobile broadband usage continue are changing the way consumers and businesses interact with the cellular infrastructure and even the Internet. This is causing power to shift from the carriers to other players — something carriers are unable to admit.
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The recession won’t cut too deeply into wireless data spending in the U.S., according to data sent over last night by Chetan Sharma of Chetan Sharma Contulting. Sharma concludes that the rise in consumer smart phones mean that data spending by consumers will offset cuts in plans caused by increased job loss and data subscriptions paid for by the employer.