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Why carriers love smartphones: Mobile data to exceed 40% of total service revenue by 2014

Published Mar 26th, 2013 9:31AM EDT
BGR

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Wireless carriers have played a huge role in the proliferation of smartphones and tablets in recent years, and that fact that these devices make our lives easier is hardly their motive. According to a new report from market research firm ABI Research, revenue from mobile data is expected to balloon 21.4% between 2012 and 2014, at which time it will account for 40.4% of the $1 trillion spent globally on cell phone services. “By offering unlimited voice calls and texts, while making data the only component in a bundled plan with positive marginal costs to consumers, wireless operators as AT&T (T) and Verizon (VZ) help to prop up voice and messaging, making positive revenue contributions in the short to medium-term,” ABI research associate Ying Kang Tan said. “Rich Communication Services (RCS) and voice and messaging APIs are a key part of their strategy of making carrier-based calls and messaging relevant to their customers.”

Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 15 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.