Data Services Will Define U.S. Wireless Market, as Voice Nears Saturation

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Data Services Will Define U.S. Wireless Market, as Voice Nears Saturation

5:30 am on September 15, 2008 | Category: Business, Telecom Services, Wireless

Wireless subscriber growth in the United States will likely slow in the coming years as the country’s cell phone market nears saturation, according to a JupiterResearch report.

American carriers are poised to add some 26 million new users over the next five years, to reach a combined customer base of 266 million in 2013.

The slow down in subscriber growth will be most pronounced in the largely-saturated teen market, which is set to add only 1 million users over the next four years, according to a separate report.

As growth moderates, carriers will need to take advantage of new services and technologies in order to stay competitive, according to JupiterResearch. Most significantly, the mobile phone is evolving from a one-on-one communications platform into a one-to-many vehicle for social networking and group communication, which will greatly increase the significance of mobile data in years to come.

“Devices like the iPhone that now offer faster network speeds and unlimited data plans at affordable prices will drive adoption of data plans within the next five years,” commented JupiterResearch vice president and research director, Julie Ask, Vice President. “The associated revenue of nearly $16 billion in 2013 will represent the largest portion of overall consumer data revenue.”

“Consumers’ increasing desire to access social applications such as Facebook on their cell phones, coupled with flat-rate pricing plans, will give carriers the opportunity to capitalize on this revenue shift,” added David Schatsky, president of the research firm.