Mobile operator core revenues to fall by over $50 billion over next five years

Study identifies new revenue streams and cost savings to offset voice and data decline
Mobile operators are set to lose $50 billion in revenues as voice and data decline.
Mobile operators are set to lose $50 billion in revenues as voice and data decline.

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A new study from Juniper Research has found that annual global operator-billed revenues from voice and data services are expected to fall by over $50 billion over the next 5 years, from $837 billion last year to $785 billion by 2022.

The new research, Future Mobile Operator Business Models: Challenges, Opportunities & Strategies 2018-2022, attributed the anticipated decline to further migration to OTT (Over the Top) messaging and social media services, with data bundle pricing erosion also expected to impact significantly on revenues.

IoT, A2P messaging, offer high growth potential
However, Juniper Research has identified a series of new revenue opportunities and costs savings which collectively would enable operators to sustain, or even increase, margins. The study claimed that the opportunities afforded by the IoT (Internet of Things) should enable operators to increase revenues from that sector by over $8 billion by 2022. It also argued that A2P messaging adoption across a number of key verticals including marketing, banking and healthcare should result in a similar uplift in revenues from that source.
Meanwhile, the report highlighted a series of measures by which costs could be reduced, including network virtualisation, the implementation of next-generation firewalls and improving CRM (Customer Relationship Management).

AT&T, BT, Head Juniper Operator Innovation Index
The research also assessed the extent to which 15 leading operators across Europe and North America were in a position to implement innovation strategies. The Juniper Operator Innovation Index identified two main players, AT&T and BT, as “Leaders” in this space.

According to research author Dr Windsor Holden, “AT&T is a market leader in terms of IoT implementations and adoptions, while both AT&T and BT are at the forefront of research into (and deployment of) virtualisation of the network.”

Juniper Research is acknowledged as the leading analyst house in the digital commerce and fintech sector, delivering pioneering research into payments, banking and financial services for over a decade.

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