As growth slows and average revenue per user continues to decline over the next five years, mobile operators will need to prioritize innovation in services, tariffs, business models, network operations, and partnerships to maintain and boost revenue, according to Ovum.
The analyst firm predicts that between 2012 and 2018, global connections will increase by a compound annual growth rate (CAGR) of less than 4 percent (from 6.5 billion to 8.1 billion), with global revenues to grow at less than half that rate (from $968 billion to US1.1 trillion).
However, 2018 will see a dip in global service revenues for the first time in the history of the mobile industry, slipping by 1 percent or $7.8 billion from 2017.
Market shift for mobile vendors
"When you compare connection and revenue CAGRs, it is clear that mobile operators are facing a new reality: they must do much more with much less," said Sara Kaufman, Ovum communications and broadband analyst. "Consolidation will help to alleviate some market pressures and is inevitable in many markets. But the need for revenue stabilization is becoming paramount for a sustainable future."
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