Monday, January 11, 2010

4G Mobile Consumer Service Revenue Will Exceed $70 Billion in 2014

As 4G network deployments gather momentum, a substantial 22% of device subscription revenues will come from suites of operator-branded premium services. Total 4G mobile consumer service revenue � including mobile Internet services - will grow rapidly to exceed $70 billion worldwide in 2014.

According to ABI Research practice director Philip Solis, �Operators of 4G networks will refuse to be marginalized as �dumb data pipe� service providers. Instead, they will offer suites of �smart services� � some internally developed, others via partnerships with third party suppliers � that will be provided over �smart networks� enabled with all-IP technologies, IMS infrastructure and cloud-based storage.�

These 4G services will be optimized to enable a proliferation of mobile devices, such as smartphones, netbooks and PNDs, and many operators will be offering pooled device subscriptions: one user subscription, many activated devices.

Internet access service will be the �killer 4G service� � no surprise considering 4G networks are data-only. However, a suite of premium services will collectively drive significant consumer adoption, revenues and profits, including:

- Location services, such as turn-by-turn directions and POIs

- Multimedia services, such as VoD and P2P video sharing

- Media broadcast services, such as pay-per-view TV and digital radio

- Gaming services, such as multi-player and augmented reality games

These �Web 3.0� services will be integrated with popular Web 2.0 features, such as personalization, community, interactivity, presence, and localization, and will be delivered simultaneously, seamlessly and transparently to �three screens� � PCs, TVs and mobile devices - over the Internet, over cable networks, and over wireless networks.

�Operators will take advantage of this market opportunity by breaking down their walls and building open ecosystems,� says Solis. �They will partner with third-party service providers from whom they can license and re-brand services; they�ll work with network and handset OEMs to influence infrastructure and device specs; and they�ll join ecosystem development organizations, such as Alcatel-Lucent�s ng Connect program.�

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