US wholesale market data
16 October 2012 |
In collaboration with ATLANTIC-ACM
According to ATLANTIC-ACM’s Domestic Wholesale Report Card, 65% of existing wholesale buyers do not offer a mobile end-user service.
Of those that do not offer a mobile end-user service, 16% of these buyers indicated they plan to add a wireless solution in the next year.
Buyers indicated a greater preference towards agency models, with 39% indicating plans to enter the wireless services market via an agency arrangement.
Buyers’ favouritism towards the agency model reflects the relatively low cost of entry compared to MVNO and white label resale arrangements.
Wireless resale revenues are expected to grow by a CAGR of 5.4% from 2011 to 2017.
In the short term, growth will be driven by continued gains from expansion of government subsidised Life Line programmes and 4G data network resale arrangements.
In the long term, revenue pressures will be driven by increased Life Line regulation and deeper penetration combined with a decline in 4G network resale revenues from Clearwire.
These negative industry impacts will be partially offset by a range of new MVNO, agency and white label arrangements.
From 2011 to 2017, the M2M market should experience rapid growth, with revenues rising at a CAGR of 28.2%, driven by increased device connectivity requirements.
US mobile service providers are still in the early stages of entering the M2M market. M2M growth will be driven by continued demand for connectivity for new devices.
Revenue is expected to grow rapidly as business models solidify and a greater number of end users gain access to M2M services.
At the same time, US carriers are redefining their market presence to encompass a larger portion of the M2M value chain, moving beyond simple monetisation of network to include platforms for enablement and applications.
Backhaul spending continues to move to Ethernet-based services as wireless buyers increased the portion of their local transport spend dedicated to Ethernet by 13%.
Alternatively, the year-on-year allocation for all other wholesale buyers to Ethernet only grew by 5%.
ATLANTIC-ACM estimates that there will be a more rapid adoption of Ethernet-based transport services by wireless service providers as historically they have been under invested in fibre-based connectivity at tower locations.
Rapid growth in tower bandwidth requirements is also driving increased adoption.
According to ATLANTIC-ACM’s US Long Haul Wholesale Report Card, 17% of US wholesale buyers are either purchasing or plan to purchase 40G Ethernet services.
For 100G Ethernet services, 35% of wholesale buyers are either purchasing or plan to purchase services.
Demand for these high capacity circuits comes from exponential growth in consumer and business end-user bandwidth consumption.
On the other hand, buyers remain trepid about 40G and 100G purchase plans, with the majority of wholesale buyers indicating they have no existing plans to purchase either service.
According to ATLANTIC-ACM’s US Long Haul Wholesale Report Card, mobile and international customers were the most satisfied with their wholesale providers’ operations.
Operational ratings were collected for brand, sales reps, provisioning, network, billing and customer service. The higher operations ratings from these two verticals may indicate that these are becoming the primary focus for wholesale providers.
From 2011 to 2012, the average customer experience touch point rating from wireless customers grew by over 8%.
On the other hand, in interviews with wholesale providers, international carriers tend to be among the most price-sensitive, with a high willingness to migrate from one wholesale provider to another for capturing cost savings.
T: +1 617 720 3700