US leads the way in data spending
Rating: tariffs, tariffs, tariffs
By Annie Turner
Subscribers in North America generate the highest monthly ARPU from mobile data services worldwide, at USD 8.90 in 2Q of this year, according to the September 2007 edition of Informa Telecoms & Media’s World Cellular Data Metrics. Subscribers in Western Europe generate USD7 per month, on average.
Informa says, “Strong uptake of ‘all-you-can-eat’ data packages, a near three-fold increase in 3G subscriptions year-on-year and rapid growth in SMS traffic in North America were the main reasons for the 43% rise in data ARPU in the region in 2Q07 compared with 2Q06. “
AT&T Mobility recorded 5 million WCDMA subscriptions at the end of June 2007 (compared with 250,000 a year earlier), taking total 3G subscriptions (WCDMA and EVDO) to over 38 million. The total number of SMS sent in the region more than doubled year-on-year to 93.7bn in 2Q07, equivalent to 120 per subscription per month.
Total data revenues for North America amounted to USD 6.97bn in 2Q07, a 66% year-on-year increase. Total data revenues in Western Europe rose only 35.6% year-on-year, while data ARPU in the region was up 14% to USD7 in 2Q07. The global data-ARPU figure was stable at USD 4.20.
Now that flat-rate data plans are becoming more commonplace and the indefensible practice of charging customers for going off-portal is being phased out in Europe, will be interesting to see if the Europeans catch up quickly. It would seem that these factors are more important when than infrastructure.
For instance, when one talks to Paul Goode of M:Metrics, he suggests that there are national characteristics of usage. For instance, the Germans are not terribly enamoured of their phones and usage is relatively low, while in Spain, where there is little 3G infrastructure, usage is relatively high and people’s mobiles seem to be a much more integrated part of everyday life.
In the same vein, I am always fascinated by any talk that Melis Turkmen, head of content services & partnering, Turkcell, gives on innovative, hugely successful advertising campaigns that have run on her network, although it is only now beginning to deploy 3G. Her enthusiasm, drive and achievement make most other operators look like they’re sleepwalking.
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