Mobile Data Services Will Generate $9.1bn in 2015

Date: 2015-10-27

Mobile data services will be the most important growth driver, generating $9.1bn more revenue in 2015 than in 2014. Operators’ focus on offering bundled services, diversified handset models and low 4G data tariffs will be the main factors driving growth of mobile data services in China over the forecast period. The top two operators, China Mobile and China Telecom, together will account for 71.3% of overall service revenue in 2015. Operators are focusing on launching integrated services combining fixed and mobile access to deliver higher-quality services to increase customer adoption and mitigate price reductions mandated by the regulator.

– China is the largest telecom services market in Asia Pacific region, with estimated revenue of US$190.0bn, or 1.7% of nominal GDP in 2015. 

– Pyramid Research expects telecom service revenue to reach $241.2bn in 2020 (4.9% CAGR) driven by operators’ investments in network expansions and 4.5/5G technology development.

– The revenue mix will continue to be dominated by mobile services due to on-going investments in 4G network rollouts. 

– We project 3G subscriptions to decline due to increased customer migration to 4G networks as operators invest in LTE coverage and capacity expansion. LTE subscriptions will reach 1.2bn by year-end 2020, 79% of total mobile subscriptions in China.

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