3GPP - 4G Americas

4 THE GROWING DEMANDS FOR WIRELESS DATA APPLICATIONS
Ever since the rollout of HSDPA networks and flat-rate pricing plans, the wireless industry has
seen unprecedented growth in mobile broadband average revenue per user (ARPU). Consumer
adoption curves are showing the “hockey stick” effect on charts and, as wireless voice ARPU hits
the flat rate ceiling, data ARPU is proving to be the next big growth engine for mobile operators.
The main driver for this growth in data revenues is simple: Internet-savvy users are now being
armed with Internet-friendly handheld devices, which give them the means to satisfy their need
for content and “connectedness.” Additionally, the networks are evolved for high-speed
connectivity and wide-scale deployments and are offering tremendous coverage for true mobility.
In fact, on a worldwide basis, users are able to roam and continue to maintain their applications
and services. Therefore, with great mobile devices in hand and network coverage in place, the
applications have definitely evolved.
Social communication patterns have also evolved, largely due to increasing frequency of
electronic contact (e.g. MySpace, Facebook, Twitter) and there is an ever-growing demand for
new and innovative applications that capitalize on the simultaneous voice and data sessions
available with HSPA today and in the future with LTE.
Flat-rate pricing plans provide one stimulus for increased data usage such as the $99 “all-youcan-eat”
packages that many operators have introduced in Europe and North America over the
past five years. By eliminating the need for customers to track or limit their daily data megabyte
consumption, applications and downloadable content have been growing in size and volume.
The operator bonus of the flat-rate plans is the acceleration of the mobile broadband adoption
curve – but the potential downside for operators is the need to quickly drive down cost/bit in order
to meet growing demand while also contributing to profits.
Users and operators will benefit greatly from Rel-7 features, and the growing demands for
wireless data are driving the need for even higher data rates and higher spectral efficiency. As
HSPA networks continue their expansive worldwide rollout, the question remains how far mobile
operators can leverage these technological advances to boost ARPU with data services.
Manufacturers are enabling a slew of applications that are driving innovations in mobile handsets
and crossing barriers into a wide variety of vertical enterprise markets. Likewise, consumers are
driving the demand for mobile content such as entertainment, advertising and Multimedia
Messaging Services (MMS).
When considering that there were more than 3.5 billion GSM/HSPA subscriptions worldwide by
December 2008, including more than 290 million 3G UMTS/HSPA subscriptions, the tremendous
opportunity for the uptake of wireless data services and applications is clear. 7
In this section, the growing demands for wireless data are demonstrated by examples of
increased operator ARPU from data services, a variety of 3G applications for consumers and the
7 World Cellular Information Service. Informa Telecoms & Media. December 2008.
www.3GAmericas.org February 2009 Page 18