Gartner Research

Market Trends: Emerging Device Service Revenue Provides an Answer to Smartphone Saturation for CSPs

Published: 05 May 2014

ID: G00261808

Analyst(s): Wm. L. Hahn, Hugues J. De La Vergne

Summary

With smartphone saturation in the U.S., communication service providers have to consider shifting their investments to grow new revenue streams from emerging connected devices. Services on these devices will drive CSP revenue growth going forward.

Table Of Contents

Introduction

Market Trend

  • Smartphone Services Revenue Has Peaked
    • Devices Coming, but Will Consumers Pay to Connect Them?
    • LTE Deployment
    • The U.S. Should Have More Emerging Connected Devices Driving CSP Services Revenue

Recommendations for International CSPs

  • Accelerate LTE Deployment
  • Offer Small Amounts of Free Data
  • Offer Cross-Line-of-Business Discounts for Multiple Services Where You Have a Competitive Advantage
  • Invest as Needed to Gain Margin as Well as Revenue

Recommendations for U.S. CSPs

  • Offer Small Amounts of Free Data to Grow Cellular Adoption
  • Improve the Marketing of Flexible Day Plans and Other Pay-as-You-Go Offerings
  • Cost-Effective Rate Plans Will Pull Wireless Usage From Wi-Fi
  • Expand Reallocation of Advertising and Hardware Subsidy Dollars to Emerging Connected Devices

Vendors to Watch

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