Mobile Data and WiFi Monetization: Convergent and user-centric offers take center stage

Published: August 2016
No. of Pages: 47
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Mobile data and WiFi continue to evolve and gain significance as catalysts of growth for the mobile services business. Network operators are employing a wide range of approaches and strategies to monetize the remarkable opportunity. Some operators focus on technological leadership, performance and service convergence to build volume and grow mobile data revenue.

BT is planning a 5G pilot to move toward full convergence of its mobile, fixed and IP platforms and create synergies across its product lines. In the US, AT&T acquired DirectTV in their quest to achieving true service convergence across mobile, video and data solutions. Many operators employ user-centric approaches to drive mobile data adoption and consumption through compelling offers built on differentiated bundling, pricing, device and content strategies.

Mobile data represents both a formidable opportunity and a challenge for network operators around the world. In 2015, mobile data revenue exceeded US$423 billion, accounting for almost half of the total mobile revenue globally (49%). It is estimated that mobile broadband revenue will exceed US$621 billion by the end of 2020.

Insatiable demand for continuous broadband connectivity has turned mobile data into a revenue growth engine for mobile network operators (MNO). Last year, operators such as China Telecom, Telefónica and América Móvil reported double-digit growth in mobile data revenue. Leading players like AT&T, British Telecom (BT) and Vodafone are leveraging mobile data to grow market share. Many carriers are now exploiting synergies stemming from mobile data analytics and WiFi connectivity.

The importance of WiFi both as a customer retention tool and a service for MNOs continues to rise. Operators such as China Telecom, BT Mobile and Telefónica promote their large WiFi hotspots networks as a value-added benefit for subscribers. Operators are also recognizing the potential of WiFi as a paid services platform and deploying ‘carrier-grade’ technology to boost the reliability and performance of their WiFi networks.

Emerging WiFi monetization models strive to attract customers by promising seamless broadband data connectivity. Among the emerging WiFi-driven service models, the most potentially disruptive uses WiFi and mobile interchangeably to keep users connected. Backed by the marketing prowess of Google, this new service has the potential to change the mobile services configuration we know of today.

The report “Mobile Data and WiFi Monetization: Convergent and user-centric offers take center stage” provides a comprehensive analysis of key monetization models and market strategies for mobile data that are being employed across the world, helping executives at MNOs, fixed telcos and pay-TV providers make informed strategic decisions. By understanding the approaches and successful strategies of leading market players, telecom executives can formulate strategies to retain customers, generate revenue growth and navigate safely in the face of disruptive competition.

Moreover, it provides analysis of key business drivers and monetization models for mobile data helps providers assess the potential impact of mobile data on their business and identify related opportunities.

Companies mentioned in this report: China Telecom, Telefónica, AT&T, British Telecom, América Móvil, Google, Boingo.

Published By: GlobalData
Product Code: Pyramid Research117

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