Ovum forecasts global mobile revenue decline for the first time in mobile industry history

The golden age of telecoms growth and prosperity is waning, according to Ovum.

New research predicts that global connections will grow by a compound annual growth rate (CAGR) of less than 4 percent between 2012 and 2018, while global revenues will grow at less than half that rate. As growth slows and average revenue per user (ARPU) continues to decline, operators will need to find new ways to serve customers more profitably, not just focus on increasing subscriber numbers, says Ovum. According to Ovum’s figures global mobile connections will grow from 6.5 billion in 2012 to reach 8.1 billion by 2018, while annual mobile service revenues will rise from US$968bn to US$1.1tn. However, global service revenues will contract in 2018 for the first time in the history of the mobile industry, declining from 2017 levels by 1 percent or US$7.8bn. As such, over the next five years, innovation in services, tariffs, business models, network operations, and partnerships will be key revenue-generating strategies.