Surge in Wireless Data Usage Expected in N.A. Mobile Market

By Editor Wireless and Mobile News on June 24, 2008 12:11 PM

Although the mobile communications market in North America is close to saturation, wireless data usage is likely to go up. Mobile service providers are expected to push for wireless networks as the primary means of communications, says Research in Markets.

In 2007, this market was characterized by high-speed networks, the emergence of the prepaid segment, third generation (3G) and fourth generation (4G), slowing subscriber growth rates, mobile advertising and search, mobile social networking, mobile banking and payments, location-based services, and mobile broadcasting. These trends are expected to continue in 2008 and beyond. The industry is now deploying technologies such as Worldwide Interoperability for Microwave Access (WiMAX), High-Speed Downlink Packet Access/High-Speed Uplink Packet Access (HSDPA/HSUPA), and Cdma2000 1xEVDO Rev.A.

Even as service providers are using revenue-maximizing strategies such as providing mobile advertising and wireless data services, voice is likely to be the primary source of revenue. This is expected to lead to price competition in this market. 3G services are expected to increase and impact data revenues with more consumers owning 3G-capable devices. "Mobile data revenues are expected to increase in 2008," states the analyst of this research. "While messaging will continue being the primary contributor to the mobile data revenue pie, 3G services and premium mobile content will also be strong segments."

Growth of Off-portal Mobile Content and Services Set to Ring in Revenues

"The off-portal segment is expected to become an important contributor to the North American mobile communications markets," notes the analyst. "While considerable uptake of off-portal mobile content services is already witnessed in the United States, the Canadian markets are still dominated by on-deck services." Service providers have undertaken various initiatives to improve uptake of off-portal content and services. Mobile social networking sites, both off-portal and on-deck, have increased and are being used more frequently. Meanwhile, mobile advertising has opened up newer possibilities for off-portal providers as well.

In the United States, mobile operators see off-portal as an attractive revenue opportunity and are implementing next-generation content billing and content management platforms for off-portal content. Initiatives are on for an 'open network' for the off-portal content space. Such open platforms will benefit consumers without burdening service providers. This shift to open platforms will lead to increased use of such services.

Every year, Frost & Sullivan publishes a study that examines the major trends in the North American mobile communications markets. The research deliverable presents major highlights of the year gone by, and lists the expected trends for the next 12 months. The consumer outlook is focused on mobile consumer applications, and is accompanied by a companion study on the North American enterprise mobile communications markets.

For more information visit http://www.researchandmarkets.com/research/da57c9/2008_north_america