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December 20, 2006

Analysys: Mobile Operators Need to Drive Non-Voice ARPU More Effectively


There was a time when the term “telephony” referred solely to voice services—allowing people to carry on audio conversations using telephones. Today, though, “telephony” often is used broadly, in reference to mobile applications, to include other services—such as texting and data transfer—that are not voice-based.
 
Despite the proliferation of such mobile services in recent years (made possible by GPRS and 3G technologies), it appears that operators have not yet developed the necessary business models to optimize profits.
 
That’s what industry research firm Analysys found in a new report examining average revenue per user (ARPU) for non-voice services.
 
“Mobile operators in developed markets are failing to achieve significant increases in non-voice ARPU,” the firm concluded in its report.
 
More specifically, Analysys found that, for the majority of mobile operators in developed markets non-voice ARPU is flat. Few operators outside Japan have managed to break through the $10 per month barrier.
 
Just a concerning, ARPU for voice services is on the decline for almost all mobile operators.
 
A few operators, though, are pointing the way to success for both voice and non-voice mobile services.

“O2 UK has increased non-voice ARPU by 19 percent per annum, to $12 per month, by stimulating the usage of SMS in a number of ways, without sacrificing its price,” report co-author Alastair Brydon said in a statement, citing one example of a successful mobile operator.
 
Here’s another example from Brydon: “3 UK has leap-frogged over Japanese operators, to achieve the highest non-voice ARPU levels in the world, by exploiting the capabilities of its 3G network to offer a host of innovative 3G services, such as mobile TV, music downloads and user-generated content.”

So, there is hope yet.
 
“Despite some disappointing findings, the best-in-class operators are demonstrating the way forward,” Brydon added.
 
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Interested in learning more about the technologies that enable mobile voice and non-voice services? Be sure to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.
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Mae Kowalke previously wrote for Cleveland Magazine in Ohio and The Burlington Free Press in Vermont. To see more of her articles, please visit Mae Kowalke’s columnist page. Also check out her Wireless Mobility blog.





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