Mobile connection targets 8.1 billion by 2018

Anthony Nwakaegho/DigitalSENSE Business News

An analyst for Industry, Communications and Broadband at Ovum, Sara Kaufman, has said that global mobile connections will grow from 6.5 billion in 2012 to reach 8.1 billion by 2018, DigitalSENSE Business News, reports.

This was disclosed in Ovum’s figures which explained also that annual mobile service revenues will rise from $968billion, about N154, 976,705,464,209.69 to $1.1 trillion, about N176.1 trillion, while global service revenues will contract in 2018 for the first time in the history of the mobile industry, diminishing from 2017 levels by 1 per cent or $7.8billion, about N1, 248 trillion.

“Growth will continue to slow in most markets around the world. When you compare connection and revenue CAGRs, it is clear that mobile operators are facing a new reality: they must do much more with much less. Consolidation will help to alleviate some market pressures and is inevitable in many markets. But the need for revenue stabilization is becoming paramount for a sustainable future,” Kaufman said.

According to Kaufman, operators in developed markets face mostly challenging times as connections in Western Europe will grow by a CAGR of less than 1 percent, while revenues will decline at a CAGR of 1.48 percent.

The next five years, DigitalSENSE Business News noted from the report said that innovation in services, tariffs, business models, network operations, and partnerships will be the most vital  revenue-generating strategies as a number of other developed markets will experience year-on-year revenue declines in 2018, including the US, which will begin to show signs of its maturity.

“In markets with very low ARPU, it will reach a floor and then stabilise. Despite the global trend, some growth opportunities will still exist, particularly in Africa, where revenues are expected to grow at a CAGR of 4.2 percent throughout the forecast. No other region in the world will see revenue growth at a CAGR above 3 percent during the forecast period.

“Select markets in Asia-Pacific and South and Central America will also drive growth over the next five years. Africa will also have the fastest-growing connections, increasing at a CAGR of 5.6 percent between 2012 and 2018, and ending the period with just over 1 billion connections. Growth in Asia-Pacific will slow, but this region will remain the biggest contributor of new connections, driven largely by China, India and Indonesia. Connections in this region will total 4.2 billion in 2018 and will account for 57 percent of net additions globally through the forecast period,” the analyst added.

*With additional report from BusinessDay

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