Mobile services market to increase at a CAGR of 2.26%

Press Release   •   Jul 29, 2013 08:57 BST

The mobile services market has been forecast to increase at a compound annual growth rate (CAGR) of 2.26% through to 2016, driven by the increased deployment of next-generation networks, and the increased adoption of Voice over LTE (VoLTE).

Mobile traffic has grown at a tremendous pace in past few years, and development in technology is expected to double this growth in the future. Surging demand for mobile services threatens to cause network congestion and affect the service quality, thus increasing chances of customers switching to competitors.

Mobile bandwidth is a precious commodity in mobile backhaul equipment market, and service providers need to measure, monitor, and manage network equipment quality to contribute to the market of mobile backhaul equipment.

According to a recent report, 'Global Mobile Services Market 2012-2016,' the main trend witnessed by the mobile aervices market is the growing usage of VoLTE. The network operators are witnessing reduced revenue through voice services. However, the LTE networks are being deployed across all geographies at a rapid rate.

The voice traffic is expected to be carried as data traffic through VoLTE, thereby making it another attractive revenue generator for the network operators. Hence, the network operators can focus more on the data services instead of trying to give unlimited call options to attract new customers.

Telecom operators are faced with two major challenges - growing their profit margin in the face of intense competition and successfully competing with over the top service providers, such as Facebook and WhatsApp.

One of the major challenges currently facing the market is the decline in the usage of voice services and the revenue generated through them. Voice services are highly profitable to network operators and have been a major revenue generator in the past. However, of late, the usage of voice services has been declining, especially in developed economies.

Key players currently dominating the mobile services market include AT&T Inc., China Mobile Ltd., Verizon Communications Inc., and Vodafone Group plc.

For more information on the mobile services market, see the latest research: Mobile Services Market

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