« Click to call: New revenue models from Mobile Search | Main | Lunch with Martin Geddes .. »
August 13, 2006
US Wireless Data Market: Mid Year Update statistics
US Wireless Data Market: Mid Year Update
By Chetan Sharma
• US wireless data market is growing at an impressive rate. Top 4 US carriers (Cingular, Verizon, Sprint Nextel, and T-Mobile) accounted for over $6.3B in wireless data revenues for the first half of 2006. Overall, wireless data service revenues exceeded $7B and the figures are likely to exceed $15B for the year 2006. This is almost a 75% jump from end-of-2005 number of $8.6B. The growth rate slowed down only slightly from 2004-2005 growth rate of 87%. SMS and data transport still drives bulk of data revenues but their percentage share is declining.
• Among the top 4 US carriers, Verizon has made the most impressive strides in the last 4 quarters, increasing their wireless data revenues by a whopping 114%. Next Sprint with 71%, T-Mobile with 65%, and Cingular with 54% also netted impressive gains.
• Verizon became the first US carrier to net over $1B in wireless data revenues in a quarter. Cingular was close second with $979M and Sprint with $935M are likely to cross the $1B mark next quarter.
• Sprint retains its leadership position of highest wireless data ARPU in terms of absolute dollar amount at $7.25 but lost its number one spot in the % data ARPU to Verizon which now leads the US carriers at almost 13%. Average data ARPU is now $6.3 or 12%.
• Overall ARPU (voice + data) increased slightly from Q106 but declined $0.27 from Q405. The general trend is towards slow decline. Data revenue is barely keeping up with the decline in voice ARPU. On an average voice ARPU has declined 8% from a year ago and data ARPU has increased 48%. Average Overall ARPU was $53.04. Sprint led with $62 followed by T-Mobile at $51, Verizon at $49.7, and Cingular with $48.4.
• If the current trends hold, Verizon Wireless is likely to surpass Cingular Wireless as number 1 US carrier by Q307.
• US had about 7M 3G subscribers by Q206, primarily from Verizon and Sprint Nextel. With Cingular joining the fray, the 3G growth is expected to accelerate with 2007 being the inflection year.
• US wireless subscriber penetration stands at approximately 74% and is likely to exceed 78% by the end of the year.
• Top 4 carriers added 12.7M subscribers from Jan-Jun 2006.
• The top 4 US carrier account for 79% of the subscribers, 86% of the service revenues, and approximately 95% of the wireless data revenues.
• US Off-net revenues for the year are likely to exceed $750M.
• Data ARPU of CDMA/EV-DO carriers was 20% higher than GSM/WCDMA carriers.
• Several high-profile MVNOs were also launched in the last few months and the overall results have been disappointing primarily due to poor execution, instant crowding effect, and competition from big 4.
• US wireless carriers are steadily climbing in their wireless data performance as compared to their peers worldwide. Verizon, Cingular, and Sprint ranked number 4, 5, and 6 respectively, amongst the top 10 operators worldwide in terms of total wireless data revenue generated for first half of 2006.
• The #1 carrier worldwide in terms of total wireless data revenue for the first six months of 2006 is NTT DoCoMo which has maintained its position for a number of years. It is now generating almost $900M/month from wireless data revenues.
• The top 10 carriers in terms of total wireless data revenues for 1H06 in order of rank are NTT DoCoMo, China Mobile, KDDI, Verizon Wireless, Cingular Wireless, Sprint Nextel, O2 UK, Vodafone Japan, SK Telecom, and China Unicom. (6 Asian, 3 US, 1 Europe. Who says US is behind). Vodafone Germany, TMO Germany, and TMO US are also closing in.
• All the top 10 carriers in the list exceeded $1B in data revenues for the first six months of 2006. China Mobile and China Unicom benefited from their huge subscriber base of 274M and 135M respectively while DoCoMo and KDDI did well because they are generating over $17 (or 28%) in wireless data ARPU.
• The top 10 carriers accounted for almost $24B in wireless data revenues for the first six months of 2006. The top 10 carriers account for approximately 700M (or approx 28%) subscribers worldwide.
• In terms of wireless investments, over $2.8B was invested in wireless related companies/startups from Jan-Jun 2006 (this figure jumped to $4.1B in July). Source: Rutberg. Mobile TV/Video, Mobile Personalization, Mobile Search and Advertising, Semiconductor, Carrier infrastructure, Device design and development are hot areas. M&A activity also picked up quite significantly.
• WiMax industry got a big boost with almost $1B investment in Clearwire and due to Sprint Nextel’s announcement of WiMax deployment. Sigh of relief for Intel and Samsung. Puts pressure on Qualcomm. Maybe Intel will renegotiate with Clearwire.
• Worldwide Handset market share: Nokia and Motorola dominated with 35% and 23% market share respectively. Samsung with 12% stands third. Source: iSuppli. Though Apple’s iPhone rumors have been clouding the market, it is Motorola which continues to lead in launching must-have handsets. Windows mobile is starting to make serious inroads in the handset market but performance issues and high price points deter mass market adoption.
If you want a powerpoint version of this , please post a comment with your email address and we will email it to you
Posted by Chetan Sharma at August 13, 2006 7:06 AM
Trackback Pings
TrackBack URL for this entry:
http://www.opengardensblog.futuretext.com/mt-tb.cgi/205
Comments
These are very helpful stats! Our company is based in North America and most of our customers are from the US, so this reinforces our belief that mobile data services will eventually become big here, although still way behind Asia and Europe.
Posted by: Stephanie Kong at August 14, 2006 10:20 PM
Interesting stats. Could you email the poerpoint version to allan.maclean @ imagesemantics.com
Many thanks,
Allan
Posted by: Allan MacLean at August 15, 2006 6:36 PM
GREAT Information ... would love a powerpoint!
Posted by: Bill Brister at August 15, 2006 7:36 PM
Would love to have a power point deck sent to my email...have just started representing a start-up content developer working in the area of chronic disease management. Have alot to learn (especially how to become approved providers with Verizon and T-Mobile) but also about wireless data in general. Thanks...
Posted by: Sarah DeYoung at August 15, 2006 11:26 PM
Thanks for posting a great summary. Great Blog! Please forward Powerpoint if you can.
Thanks
Posted by: Greg Harris at August 16, 2006 2:26 AM
Hi,
good stats! is there any stats about MVNOs like Helio ?
I would like to get the ppt version of this.
Posted by: Serkan at August 16, 2006 6:29 AM
I would like a powerpoint version of "US Wireless Data Market: Mid Year Update."
Posted by: Abbe Patterson at August 16, 2006 10:39 PM
this snapshot stats are good. I'd like to see info on what productivity apps thecarriers believe are important for them (i.e. which will lead to increasse in ARPU)
Posted by: Andy Travers at August 17, 2006 11:22 AM
Hello Chetan,
very interesting numbers. Is there any indication in the source for the numbers how much of the $7bn is revenue from SMS?
Thanks,
Martin
Posted by: Martin at August 17, 2006 12:34 PM
Could I please have a PPT version of these stats? Thank you, excellent information.
Posted by: Kate at August 17, 2006 3:16 PM
Great stats. Please send me the pp of this information.
Thank you!
Posted by: Jeff Arbour at August 17, 2006 4:00 PM
I would love a version of this in PPT. The stats are incredibly informative.
Thanks!
Posted by: Ian Geller at August 22, 2006 9:16 PM
Please send me a copy of this in powerpoint format to my email at rc.softstar@gmail.com . Thank you so much for the info!
Posted by: Ryan Chen at August 23, 2006 7:31 AM
Pls send me the ppt of this information
Posted by: Raj at August 23, 2006 8:05 AM
It's superb to get such succinct information about the size of the market both for the USA and globally. Keep up the good work, please email the presentation to: ekearins@valista.com
Regards.
Posted by: Evanna at September 5, 2006 3:19 PM
It's really a good analysis , gives a complete inforamtion about global wireless market.
please mail the presentation to divya.jain@diaspark.com
Posted by: divya at September 15, 2006 8:05 AM
Can I have a copy of the powerpoint presentation? Thanks.
Posted by: Geraldine Zingapan at September 15, 2006 5:18 PM
Great analysis. Can you also provide the actual number of voice and data subscribers?
Posted by: Scott Rickard at October 5, 2006 1:06 PM
Interesting data. Can you please e-mail the presentation to me at rgill@gigatronics.com
Posted by: Ravi Gill at November 1, 2006 7:48 PM
Very helpful stats. Please send to my email.
Posted by: vadiraj at November 6, 2006 11:39 AM
Thanks a lot for the blog, it really helps to catch up with the global trends.
Could you please share the ppoint file for US "Wireless Data Market: Mid Year Update statistics"
Thank you.
Posted by: Alaaddin Alpay at December 9, 2006 11:52 AM
Great list of statistics. I'm interested on any tracking of unlocked GSM unlocked devices launching on carrier networks. We see it a growing market trend in the region.
Posted by: Jon Driscoll at January 28, 2007 4:46 PM
Great stats!!
Posted by: rjoseph at April 1, 2007 6:51 PM
Very interesting information. We are waiting for the North America data market to pick up the pace of the Asian markets and see a great data revolution!!!!!!!!!!!Huge revenues involve
Posted by: Victoria Abello at April 5, 2007 1:31 PM
Doing a personal research on this topic. Thanks for the great info. A ppt version would make me really happy
Posted by: Akin Onal at April 12, 2007 1:19 PM
Great stats Chetan,
I know I have come across this amazing piece of information very late in the day.But if you still could send me a copy of the powerpoint presentation at amitkum@techmahindra.com,you would have done me a great favour...
Posted by: Amit Singh at April 20, 2007 9:07 PM
Please forward a copy of the ppt.
Thanks
Posted by: Ray at April 23, 2007 8:27 PM
Please forward me a copy of the powerpoint for the US Statistics
Thanks
Posted by: Tim Jones at April 24, 2007 11:13 PM
Hi
Great piece of work, if you still have it please could I get the powerpoint?
many thanks
James
Posted by: James at April 25, 2007 8:13 AM
Very interesting stats. Could I have the powerpoint as well?
Posted by: Ari at April 26, 2007 11:58 AM
How up to date is this info? I work for Sprint and I would like to share this info with my retail team. It is always good to gather as much knowledge as you can about such a competitive industry.
Posted by: Cleiton Goncalves at May 17, 2007 6:05 AM
I'm doing a presentation on wireless , the article is great! I would love a powerpoint on this info>
Thanks
Peter Zajac
Posted by: Peter Zajac at May 26, 2007 6:16 PM
very nice summary. If possible, please send me the powerpoint presentation.
Regards,
Ron Rios
Posted by: Ron Rios at June 10, 2007 8:49 PM
I would appreciate it if you would forward a copy of the powerpoint presentation.
Thanks.
Posted by: Jerry at June 19, 2007 2:47 PM
Hi there,
Two questions: Do you have an updated version of these stats? Can you send me the powerpoint version for this post as well as an updated version if available?
Thank you so much!
Posted by: Stephanie Kong at August 1, 2007 2:00 AM
Glad I could find up to date stats. Please email the ppt to me.
Thanks.
Posted by: Alan Albert at August 10, 2007 8:28 PM
This is an excellent research on the US market with indepth analysis. Would require a PPT version of the same.
Thanks
Gaurav Gautam
Posted by: Gaurav Gautam at August 20, 2007 6:18 AM
very useful stats thank you
Posted by: john at September 7, 2007 5:06 PM
please send the ppt
Posted by: Brian Buchanan at September 21, 2007 9:33 PM
Please forward me something related to
"Global Wireless Entrerprise Application trends" with segregation of US,EU and APAC regions.
Thanks,
Swapnil
Posted by: Swapnil at September 24, 2007 2:50 PM
Great research. Please send me the ppt. Also, I would appreciate if you have updated research. Thank you.
Posted by: Kevin at October 23, 2007 8:10 PM
I would like that powerponit that you offer in this article.
Thank you very much
Posted by: Andrés Parejo at November 15, 2007 11:00 AM
hi
this is really going to help me alot
Posted by: pratik pawar at November 23, 2007 3:18 AM
Hi, these are great stats; could you provide a PPT version of this information please? Thanks so much.
Posted by: Pratish Halady at November 25, 2007 9:48 PM
Hi, can I have a copy of the powerpoint presentation? Thanks.
Posted by: Charissa at December 6, 2007 3:46 AM
Hi
The information is interesting . However can you provide the same statistics for year 2007
thanks
Posted by: Mansi at January 26, 2008 9:13 PM
AGreat info. Can you send me the PP presentation? Thanks
Posted by: Dave H at February 4, 2008 6:25 PM
very good stats.
Could you please email me the powerpoint. Also in case you have new numbers for 2007, it would be wonderful
Posted by: Seydou Djabate at February 22, 2008 5:02 AM