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Open Access Billing Strategies Drive Strong Cingular / T-Mobile Data ARPU Growth
Mobile Video Content Accelerating in North America
Boston, MA - August 17, 2005 -- The Wireless Internet Application service of Strategy Analytics today released its new Cellular Data Forecast model (2005 - 2010) for North America. Building on its previous pioneering forecasts, this report breaks out user numbers, price and frequency-of-use metrics for over 40 discrete application categories. Strategy Analytics estimates that end-user spend on mobile data products will grow from $8 Billion this year to just over $29 Billion in 2010, with 45 percent of this coming from personalization and infotainment content
Senior Analyst, Philip Taylor, notes, "The North American download services market continues to exhibit strong growth with almost all of the carrier led retail channels succeeding in increasing sales of download content and other value added services. For example, use of Verizon's `Get It Now" portal has nearly doubled to more than 120 million applications bought in the 12 months to June 2005.
Strategy Analytics expects that revenues from sales of mobile content will nearly quadruple from $3.2 Billion this year to $13 Billion in 2009, a CAGR of 37.2 percent, with video infotainment exhibiting the strongest growth of 107 percent), rising from $76 Million this year to almost $1.7 billion in 2010.
Source: Strategy Analytics, Inc.
David Kerr, Vice President of the Strategy Analytics Global Wireless Practice, adds, "Of the US carriers, Sprint has taken the lead in converting data service availability into revenues, through the aggressive expansion of its value added service portfolio. It also deserves credit for its success in combining content bundles with different PCS Vision subscriptions, while at the same time allowing users to add specific content subscriptions a la carte if they so choose."
Mr. Kerr further states, "Verizon Wireless has led the rollout of high speed data, but Cingular and T-Mobile are now achieving rapid data revenue growth by adopting more open policies with regard to opening billing platforms (SMS and micro billing) to third party content providers."
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