North America - wireless market saturation

North American Mobile Market Reaching Saturation

According to report from Frost & Sullivan, the North American mobile communications market is approaching saturation and mobile service providers will need to target the prepaid and credit-challenged segments to continue to increase market share. According to recent market analysis, the research firm says that both wireless and direct-to-consumer data services are key areas for carriers to sustain revenues.

In its report, Frost & Sullivan found that the North American market earned revenues of more than $159 billion in 2007 and estimates the market will only reach $180.6 billion by 2013. The challenge for mobile service operators is to target previously unserved or underserved segments, while sustaining average revenues per user levels.

“The prepaid segment still holds a lot of potential,” said Frost & Sullivan industry analyst Vikrant Gandhi, in a statement. “However, prepaid ARPUs are much lower, and designing and offering next-generation mobile data services to the prepaid segment presents a unique set of challenges.”

The research company said these challenges can be overcome by offering consumer and enterprise mobile data services, converged offerings, mobile advertising and loyalty programs. While targeting new customers, the report stressed the need to maximize revenue from existing customers by providing value through a mix of voice and data services.

In the United States, Frost & Sullivan said it expects a substantial increase in mobile data revenues, introduction and expansion of mobile multimedia and broadcasting services, significant uptake in mobile social networking, adoption of mobile advertising and search, greater use of mobile off-deck services and mobile banking and mobile payments.