U.S. mobile data revenues cross $10 billion milestone

The U.S. wireless data market grew 5 percent quarter-over-quarter in Q1, a year-over-year increase of 32 percent according to Chetan Sharma Consulting, adding that U.S. mobile data revenues for the first time crossed the $10 billion benchmark. Chetan Sharma contends that given overall data revenue growth, it appears the recession has registered as little more than a blip on U.S. operator service revenues despite the negative impact on the infrastructure and handset segments--the firm adds that the U.S. mobile market has so far weathered the economic downturn better than other nations, with capex spending expected to remain strong in 2009 thanks to increasing activity around 3G/4G deployments and trials. Chetan Sharma now forecasts overall data revenues for the remainder of 2009 will grow 24 percent compared to 2008 totals to $42 billion for the year.

At the end of the first quarter of 2009, 62 percent of U.S. subscribers are now using some form of mobile data services. Messaging volume jumped 27 percent in Q1, translating to a quarter-over-quarter messaging revenue increase of 7 percent--U.S. subscribers now average 485 messages per month, a frequency of one message per sub every 1.5 hours. (By comparison, subscribers in the Philippines average one message per hour.) Non-messaging services now account for 50 percent to 60 percent of U.S. carrier data revenues for U.S. carriers, the first time that non-messaging share exceeded the 60 percent mark. Sprint led in data ARPU with $15, followed by Verizon Wireless at $14.16. In terms of percentage contribution, Verizon led with 27.91 percent, followed by AT&T at 27.2 percent.

Not everything is rosy, however--Chetan Sharma notes that high unemployment rates hit the data card segment, although recovery is expected over the next 18 months as more of the workforce comes back. In addition, some subscriber segments experienced a dramatic shift from postpaid to prepaid services, and the firm argues it is likely that as much as 50 percent to 60 percent of such consumers will not go back to postpaid services, permanently trimming operator ARPU. Venture financing in the mobile sector also suffered a rapid decline, falling 58 percent compared to Q1 2008.

For more on Q1's mobile data growth:
- read this release

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