Impact of smartphones to change the shape of operators’ revenue
25 October 2011 |
While smartphones represented 23% of all active handsets in western Europe in 2010 and are expected to account for half of all handsets by 2014, this figure is expected to grow to 72% by 2016, according to research by Analysys Mason.
The usage patterns of end consumers is having significant effects on the telecoms market. Already, more than 60% of high-end smartphone users have browsed the internet or used applications on their mobile handset, compared to only around 15% of users with other phones.
This is expected to reinforce a long-established trend in most of the developed world: voice and messaging revenue is expected to decline or plateau, while data revenue is expected to continue to increase rapidly.
Analysys Mason forecasts that voice services will continue to be the main contributor to handset ARPU in western Europe during the next five years; however revenue will decline at a CAGR of –6% in nominal terms.
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