Mobile service revenue in US to reach $197 billion in 2020
According to Strategy Analytics, the mobile service revenue in the United States (US) wireless market is expected to grow from $195 billion in 2015 to $197 billion in 2020. The revenues will be driven by a 5.7 per cent growth in prepaid service revenue and 3.3 per cent growth in data revenues.
Further, nearly 100 million wireless connections (including consumer electronics connections but excluding machine to machine) will be added through 2020, with a penetration rate of 128 per cent. Players including Verizon Wireless and AT&T, which are diversifying their revenue streams, will continue to lead the telecom market, meanwhile, entities such as T-Mobile USA and Sprint will gain ground.
The research firm underlines that telecom industry landscape in US is changing. For example, T-Mobile has already surpassed Sprint in terms of total subscribers as of mid-2015. T-Mobile USA with its pro-consumer focus has delivered improved network performance and a strong move towards transforming its entire network in to long term evolution (LTE) network. However, the operator like its competitor Sprint needs to address issues related to high customer churn and low operating margins.
Strategy Analytics concludes that industry leaders including Verizon Wireless and AT&T are focusing on maintaining their leadership position by diversifying revenue base, building new content delivery platforms, and developing multiscreen video offerings. Meanwhile, other players including Google which has entered the US telecom market as a mobile virtual network operator add to the competition in a dynamic market place.
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