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Mobile data revenue fell below $ 1 per gigabyte



Mobile operators are trying to improve ARPU (Average Revenue Per User) by upgrading their networks, as mobile data revenue fell below $ 1 / GB for the first time in Q4 2020. This information is contained in the latest report from Strategy Analytics,

Global cellular traffic increased 35% year-over-year in the fourth quarter of last year, according to Strategy Analytics. At the same time, the total revenue from mobile services increased by only 0.6%. The share of 5G networks increased from 2.1% in September 2020 to 3.0% in December 2020. At the same time, China accounts for 80% of the global indicator.

The Chinese and Indian markets have a significant impact on the global average mobile data revenue per gigabyte. In the fourth quarter in these countries, this figure was only $ 0.55 and $ 0.10, respectively.

Analysts point out that data-based pricing will be a challenge for many operators who use revenue or cost per data metrics. With the increase in bandwidth provided by 5G, the “value” of each gigabyte decreases. This means that operators need to move to a new pricing model that will drive revenue growth “through better experiences and richer content, not more data.”

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