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Mobile services market to plateau after 2015

Global mobile service revenue growth will accelerate in 2014, though after passing the $1 trillion mark in 2015, will struggle to grow any further. According to the Strategy Analytics Wireless Operator Strategies (WOS) service report, “Global Mobile Service Revenue to Stagnate at $1 Trillion Mark”, and accompanying forecast, 4G LTE has been the catalyst for 2014 improvements.

Key findings from the report:

  • Europe remains a drag on global mobile service revenue growth, with 2014 revenue forecast at 17% below its 2008 peak. The jump in global growth in 2014 is largely down to the slowing rate of decline in Europe.
  • 3G service revenue has begun to decline in 2014 as 4G growth accelerates. 4G LTE connections will account for 9% of global service revenue in 2013 and more than half of the 2018 total.
  • Despite the healthy 4G LTE contribution, revenue growth prospects are slim for mobile operators this decade. Mobile connectivity revenue will begin to decline in 2019.

“China Mobile’s aggressive push on 4G, and the expanding low-cost device ecosystem it is supporting, represents a boost for operators in their attempts to push 4G into more price-sensitive segments,” comments Phil Kendall, Executive Director, Wireless Operator Strategies. “However, while we view 4G LTE as a key part of any mobile operator’s revenue growth strategy, it is not in itself sufficient to significantly improve the situation for many.”

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