Friday, August 12, 2011

Mobile operators facing tough time as their revenues begin to flatten with declining ARPUs


While global operator-billed revenues will exceed $1 trillion annually by 2016, mobile network operators (MNOs) face the prospect of a “nightmare” scenario as operator costs will exceed revenues within four years unless remedial action is taken, according to a recent report by Juniper Research.
It is stated that operators will see their costs overtaking revenues at a phenomenal rate as their revenues begin to flatten with declining ARPUs as a result of market saturation, and also the surge in data usage that pushes backhaul costs ever higher.
However, the report has identified new opportunities for operators in areas offering integrated rate plans, while also providing a wide range of segmented prepaid and postpaid tariffs. It also emphasises the potential for double-sided revenue streams in areas such as cloud, M2M and mobile financial services where mobile operators can leverage their existing assets.
There is no “one-size-fits-all” solution for operators as the circumstances of individual operators differ widely, even within the same market.
The report has outlined a series of measures which mobile operators can select according to their particular needs. It states that mobile operator business models for the period 2011-2016 will based on high value strategic planning tool, expert analysis of MNO opportunities, and in-depth business model comparison.





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