Frost & Sullivan: Mobile Operators Rely on Mobile Data Services and Innovative Pricing...

Frost & Sullivan: Mobile Operators Rely on Mobile Data Services and Innovative
Pricing to Drive Value in North American Mobile Communication Markets

MOUNTAIN VIEW, Calif., July 14 /PRNewswire/ -- The North American mobile
market, with over 80 percent penetration, is saturated. Mobile operators are
optimizing revenues from existing subscribers by introducing innovative
premium data services that utilize next generation wireless networks and
devices. They are also augmenting revenues by offering additional connectivity
to existing subscribers, particularly wireless broadband Internet. The current
economic climate has ratcheted up the attractiveness of the prepaid segment,
and pricing such as Boost Mobile's unlimited service for $50 and others, have
become useful tools to counter the slowdown.

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New analysis from Frost & Sullivan (http://www.wireless.frost.com), 2009 North
American Consumer Mobile Communications Outlook, finds that the market earned
revenues of over $171.3 billion in 2008 and estimates this to reach $188.3
billion in 2014.

If you are interested in more information about the study, please send an
e-mail to Jake Wengroff, Corporate Communications, at jake.wengroff@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

"The mobile phone is today the most important communications device and
subscribers continue to rely on wireless services for their communication,
entertainment, and information requirements on-the-go," says Frost & Sullivan
Industry Analyst Vikrant Gandhi. "Besides voice, text-messaging has evolved as
an important medium for communication, primarily because it can be used in a
wide range of scenarios, is ubiquitous, and is extremely cost-effective,
especially when used as part of a data plan."

Other important and popular data services include mobile Internet, premium
mobile content, and others. More than 50 percent of North American mobile
subscribers are regular users of text messaging. A major part of the messages
are sent as part of a dedicated or bundled data plan. Mobile internet
penetration in North America is in the 12-15 percent range, and the usage of
both consumer and enterprise mobile applications is expected to continue on an
upward trajectory.

Although North American mobile operators have established a reputation for
zealously protecting the consumer experience, achieving that end is not always
possible, as a large portion of traffic is going off deck. This rapid
explosion of content throws up several operational challenges as well.

"Mobile operators are forced to expand their content catalogs and yet are not
able to increase the data plan rates to justify this expansion," explains
Gandhi. "At a certain 'tipping point', it may not be feasible to continue
doing this without exploring other sources of revenues - such as mobile
advertising and other connected devices."

Bringing new devices to market at a rapid pace is by no means an easy task,
and long product development cycles further complicate the matter.
Participants must seek ways to increase average revenue per user (ARPU)
without being caught up in the race by blindly adding new services, devices,
or network technologies.

Seeking new technologies is crucial; however, the question whether network
technologies drive content or the promise of delivering next generation
content drives investments in a network will always remain. Mobile operators
must explore multiple strategic factors encompassing cost and service pricing,
network technologies and devices, content lineup, quality of service and
customer-care, the enterprise segment, geographical coverage, and others to
derive the cutting edge in the highly competitive North American mobile
communication markets.

For example, mobile operators could organize mobile content into various tiers
and synchronize these with customer demographics to determine the potent mix
they must have on their decks. Apple's iPhone and Blackberry Storm showcase
the intensity of the impact compelling devices can have on subscriber uptake
and service usage.

2009 North American Consumer Mobile Communications Outlook is part of the
Mobile and Wireless Growth Partnership Service program, which also includes
research in the following markets: U.S. premium mobile downloadable content
and applications markets, U.S. mobile advertising and mobile search markets,
U.S. mobile financial services markets, mobile banking and mobile payments,
U.S. mobile social networking markets, advances and trends in mobile video
services, U.S. off-deck mobile content markets, U.S. mobile messaging markets,
U.S. mobile video services markets, U.S. mobile connection aggregation
markets, and others. All research services included in subscriptions provide
detailed market opportunities and industry trends that have been evaluated
following extensive interviews with market participants.

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2009 North American Consumer Mobile Communications Outlook
N56B
Contact:
Jake Wengroff
Corporate Communications - North America
P: 210. 247.3806
F: 210.348.1003
E: jake.wengroff@frost.com

http://www.frost.com

SOURCE Frost & Sullivan

Jake Wengroff of Frost & Sullivan Corporate Communications - North America,
+1-210-247-3806, fax, +1-210-348-1003, jake.wengroff@frost.com