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Issue 1


Do Smart Cards Have A Future?

Is India a Good Call?

Privacy issues threaten CRM thinking.

Calculating 3G revenues.

Members Research Alliance Update.


How could 3G revenues be calculated?

by Qmars Safikhani

3G mobile revenue drivers will revolutionise the forecasting process for mobile growth. Current forecasts that predict the revenue based on the traditional ARPU calculation, that is currently applied to second-generation licenses will not be sustainable.

The main source of revenue for the second-generation mobile services are voice and SMS. SMS already is driving nearly 10% of revenue for some European wireless operator. In addition customised infotainment, location-based services, multimedia messaging services, mobile Internet access, mobile intranet/extranet, and rich voice technology will all be part of new revenue streams for 3G, and there will no doubt be other, more innovative services to follow.

As the industry structure evolves, no definitive business models have yet been established for 3G, and the role of the services providers will have to change. Current service providers are only providing voice-only applications to the consumers, but in the future they will manage the direct relationship between the consumer and multiple partners providing numerous applications. These multiple partners will require revenue shares as appropriate. In consequence we must consider the necessity of a different framework to calculate new service revenues for service providers.

According to the nature of 3G-revenue streams, we believe the diversification of the market by consumers and businesses, plus price discrimination, will help to establish a framework and timescale for growing the future revenues.

According to our forecasts, the main source of revenue among 3G services would be classified as follow:

  • Simple voice
  • Customised infotainment
  • Mobile Intranet/ Extranet Access

This forecasting reflects the reality of deployment of those services across the whole industry. For example, Nokia are already showing the first signs of the next evolution of customised infotainment, by shipping colour-screen mobile phone with an in-built digital camera, taking the first steps toward increasing the volume of revenue from customised infotainment.

The speed of adoption (therefore generating revenue) depends on the evolution of services and cost. Teleconomy is currently employing a number of proprietary methodologies to predict future trends in the mobile industry with the greatest accuracy, within the larger context of overall telecom market revenues. For further information about these statistics, please email us here


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