Mobile data revenues in SA are set to triple between 2006 and 2011, says BMI-TechKnowledge.
The research firm's new report, Enterprise and Consumer Mobile Data Applications Market, says mobile network operators will still derive most of their revenues from voice calls. However, data will eat into the total revenue pie at an increasing rate as voice tariffs come under fire and operators seek new revenue streams, the report says.
"The contribution [of data] to total operator revenue, excluding equipment, is forecast to grow from 6.4% in 2004 to 17.4% in 2011," says Tertia Smit, telecoms analyst and author of the report.
Other than SMS, data growth will mainly be driven by multimedia content downloads and mobile broadband access over handsets and PCs, she says.
Smit adds that while SMS messaging continues to be the leading-edge data application, early indications of pricing erosion are beginning to emerge.
Pressure will increase over the forecast period due to the growing adoption of MIM (mobile instant messaging), MMS and push-to-talk, she says.
MIM has taken off in SA through providers like MXit and this will continue to have a cannibalising effect on SMS average revenue per user, she adds.
Broadband growth
Broadband Internet growth is also being taken to a new level by the participation of the two larger mobile cellular operators, Vodacom and MTN, in the market, the report says.
"At the current rate of adoption, Vodacom and MTN are expected to overtake ADSL in terms of the number of connections in 2007," she says.
"This local anomaly is also due to the slower than expected roll-out of ADSL, the supply of which is falling behind the demand," adds Smit.
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