US Data Market Grew 40% in Q2 '08

The US wireless data market grew 40% in Q208 compared to Q207 to reach $8.2B in data revenues according to a report from Chetan Sharma Consulting. The total for 2008 stands at US$15.7 billion for the first six months, 38% higher than the total for the same time period in 2007. The USA again exceeded Japan in mobile data service revenues for the quarter and the market is on track to reach US$34 billion in data revenues for 2008.

They found that overall ARPU increased by $0.46. Average voice ARPU declined by $0.05 while average data ARPU grew by $0.50 or 5%.

Verizon lead in data ARPU with $12.58 (or 24.41% of the revenues) closely followed by Sprint at $12 (or 21.4354%), AT&T at $11.59 (or 22.91%) and T-Mobile at $8.60 (or 17%). The strongest growth in Q208 came from Verizon with 13% increase in data revenues from Q108. Verizon generated an industry record $2.6B in data revenues closely followed by AT&T at $2.5B. Both AT&T and Verizon are on target to exceed $10B in data revenues for the year for the first time by any operator worldwide besides NTT DoCoMo (the two US carriers are already close to 50% of the target). AT&T and Verizon now account for 62% of the market data services revenues. Sprint reversed its decline in data revenues during last quarter to increase its data revenues by 3% in Q208. T-Mobile registered a 5% uptick.

Non-messaging continues to grab 50-60% of the data revenues for the US carriers.

3G penetration in the US went past 30% in Q208, with Verizon leading the pack with over 60% 3G subscriber penetration compared to 25% 3G subscriber penetration at AT&T. T-Mobile is slowly expanding its 3G coverage. 3G subs have over $23 in data ARPU. These trends are expected and the diffusion of mobile broadband will continue to create new opportunities and revenues for the ecosystem.

On the web: Chetan Sharma Consulting

Posted to the site on 13th August 2008