But report says profits are in danger due to market saturation, falling ARPUs and the rising cost of data traffic
Global mobile operator billing revenues will top £1 trillion by 2016, but rising costs mean urgent action is required within the next four years to protect profits, according to a report by Juniper Research.
The Mobile Operator Business Models report warns that operators could be stuck in a “nightmare” situation as market saturation and falling average revenue per user (ARPU) cause core revenues to “flatline” while the cost of handling mobile data traffic increases dramatically.
Data traffic is expected to rise by a factor of 13 by 2015, placing a huge burden on operators, says the report.
Juniper recomends that operators look at a range of different strategies to avoid seeing their margins squeezed.
These include introducing new types of tarriffs and rate plans, but also building new revenue streams by offering products such as cloud services and mobile finance.
Report author Dr Windsor Holden (pictured) said: “Clearly, there is no one-size-fits-all solution for MNOs, simply because the circumstances of individual operators differ widely, even within the same market.”
The report also says that flat rate data bundles could give teir 2 operators a competitve advantage, and that the rising price of fossil fuels will make “green” networks and base stations more economically appealing.