Mobile data revenue fell below $ 1 per gigabyte

Mobile data revenue fell below $ 1 per gigabyte

Mobile network operators are trying to increase ARPU (Average Revenue Per User) by upgrading their networks, as mobile data revenue fell below $ 1 per gigabyte for the first time in Q4 2020. This information is contained in the latest report from Strategy Analytics,

Global cellular traffic increased 35% YoY in the fourth quarter of last year, according to Strategy Analytics. At the same time, the total revenue from mobile services increased by only 0.6%. The share of 5G networks increased from 2.1% in September 2020 to 3.0% in December 2020. At the same time, China accounts for 80% of the global indicator.

The Chinese and Indian markets have a significant impact on the global average mobile data revenue per gigabyte. In the fourth quarter in these countries, this figure was only $ 0.55 and $ 0.10, respectively.

Analysts point out that pricing based on data volumes will be a problem for many operators who operate on revenue or cost per data unit metrics. With the increase in bandwidth provided by 5G, the “value” of each gigabyte decreases. This means that operators need to move to a new pricing model that will drive revenue growth “through better experiences and richer content, not more data.”

Mobile data revenue fell below $ 1 per gigabyte

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