3rd March 2013

Mobile data revenue will overtake voice by 2018

The rise of connected devices will drive mobile data revenues past voice revenues globally by 2018, according to a new report from the Global System Mobile Association (GSMA). This data explosion will provide better access to healthcare and education, help lift people out of poverty, fight hunger and reduce carbon emissions.

Mobile data is being driven by a surge in demand for connected devices and machine-to-machine (M2M) communications, as we accelerate towards a truly networked world. This is transforming the socioeconomic future of people in both developed and developing countries. The new GSMA report, produced in collaboration with PwC, reveals how innovative mobile connected products and services will revolutionise people's lives over the next five years:

In developed countries:

• Mobile health could save $400 billion in healthcare costs in OECD countries
  
  
• Connected cars could save one in nine lives through emergency calling services, providing quicker and more accurate location and response times
  
  
• Mobile education can reduce student drop-outs by eight per cent
  
  
• Smart metering can cut carbon emissions by 27 million tonnes – the equivalent of planting 1.2 billion trees

In developing countries:

• Mobile health could save one million lives in sub-Saharan Africa
  
  
• Automotive data will improve food transport and storage, helping feed more than 40 million people annually – equivalent to the entire population of Kenya
  
  
• Mobile education can enable 180 million students to further their education
  
  
• Smart cities with intelligent transport systems could reduce commute times by 35 per cent, giving commuters back a whole week each year
  

Michael O'Hara, Chief Marketing Officer, GSMA: "Mobile data is not just a commodity, but is becoming the lifeblood of our daily lives, society and economy, with more and more connected people and things. This is an immense responsibility and the mobile industry needs to continue collaborating with governments and key industry sectors to deliver products and services that help people around the world improve their businesses and societies."

The increase in mobile operator data revenues is a global trend, across both developed and emerging markets. In 2012, Japan became the first country where data revenues exceeded voice revenues, due largely to the availability of advanced mobile broadband networks and a higher adoption of the latest smartphones, tablets and connected devices. This year, Argentina's data revenues will exceed voice revenues – attaining this milestone ahead of the US and UK, which will reach this point in 2014. Kenya will experience this shift in 2016, with global revenues following in 2018 as mobile broadband continues to thrive.

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