According to a new report from ABI Research, in the first quarter of 2014, the worldwide mobile service revenue increased 0.58% year-on-year (YoY) to $264 billion.
The data leads ABI to believe that the aggregate service revenue for 2014 will grow 2.9% YoY to $1.01 trillion, “mainly driven by the robust growth of the mobile Internet market.”
Proliferating mobile data subscriptions and enhanced network capacity will drive global mobile Internet service revenue to $456.7 billion by 2019—44.7% of total mobile service revenue. Despite global service revenue growth, the Western European market is declining: 1Q 2014 service revenue declined 5.2% YoY.
“Facing continued price pressure driven by the competitive mobile market, mobile carriers have had to take on higher subscriber retention and acquisition costs to support their market positions. This has affected profitability,” explains Marina Lu, research analyst at ABI Research.
ABI Research’s Market Data indicates that the major European carriers such as Vodafone, Telefnica, T-Mobile, and Orange all suffered from gross profit decreases in 1Q 2014, whereas in North America mobile carriers are still demonstrating a positive outlook for gross profit.
If you want to know more, these findings are part of ABI Research’s Mobile Deployments, CAPEX, and Traffic Market Research.