Ofcom: Mobile Data Volume +2234%, Revenues +90% (in 2 Years)

  

Ofcom. the UK regulator, published a survey "The Communications Market 2010" (here) with enormous amount of information on communication (TV, Radio and Internet) consumption in the UK.

One of the charts (see below) compares the revenues and volume consumption in mobile data. Ofcom says - "It indicates a substantial growth in data revenues, but a much faster growth in data use, which we estimate increased by over 2200% in the two years to the end of 2009. During 2009 there was a slowdown of growth in data revenues, which increased by 26%, while data volumes more than doubled. Overall, this represents a 92% fall in the cost per unit of data between Q4 2007 and Q4 2009, and a 59% fall in the cost per unit of data between Q4 2008 and Q4 2009."

This phenomenon is not new, and is commonly known as the "scissor effect". We have seen lately how this could be improved:

• Ericsson CTO: "The business model for mobile broadband is becoming one of increasing profitability and competitive differentiation through superior QoS - here
   
• DPI Deployments (17): Leap Wireless/Cricket New Service Plans - here
   
• Skype Does Good for 3UK  - here
   
• TeliaSonera's New Business Model: Value-based Pricing - here.

Ofcom comments that ".. it should be noted that data revenues are likely to be understated, as we are only able to include data-specific revenues (i.e. metered fees or separate add-ons), whereas increasingly a data allocation is included within the monthly line rental fee for mobile contracts. The increase in data volumes and revenues should also be seen in the context of operators using existing capacity on 3G networks, and achieving substantial increases in capacity with the relatively inexpensive upgrade of 3G networks to HSPA."