Feature Article

December 20, 2012

Mobile Operators Seeing Increased Traffic from OTT Services, Says Infonetics Research

Infonetics Research today released excerpts from its latest 2G, 3G, 4G (LTE) Services and Subscribers: Voice, SMS/MMS, and Broadband report, which outlines the state of the market, including mobile services revenue, mobile voice and data average revenue per user (ARPU), and mobile voice and broadband subscribers. Through all of this information, though, the primary message conveyed by the report is that the mobile market is shifting from voice to data across the board.

As Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research, points out, this has led to over-the-top revenue shifting away from mobile operators as users look for cheaper alternatives to SMS. 

Image via Shutterstock

"SMS use is fading in places like Japan, the US, the Netherlands, and the UK in favor of free applications over mobile broadband that enable internet browsing, email and, more importantly, video," added Téral.

Of course, though, while these services may be free for mobile subscribers, handling the traffic generated is not free for network operators. The cost is largely as a result of operators being forced to upgrade their networks in order to handle this traffic, with the only alternative being network outages and lost customers.

Other highlights from the report include the fact that while mobile service revenue is increasing year over year, the growth rate is decreasing and often not keeping pace with network operator capital expenditures. Meanwhile, mobile broadband services are growing faster than any other mobile services, with global revenue expected to almost double by 2016.

Earlier in December, Infonetics Research identified Sonus Networks as having the fastest growing portfolio of session border controllers in the market. Indeed, the SIP communication company has consistently led the industry in growth since the first quarter of 2011.

More recently, Infonetics Research released its DDoS Prevention Appliances report, which analyzes DDoS vendor performance as well as that of their DDoS appliances.

Edited by Brooke Neuman

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