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Voice Revenue Continues to Outpace Data Revenue: Study

TMCnews Featured Article


July 16, 2010

Voice Revenue Continues to Outpace Data Revenue: Study

By Anil Sharma, TMCnet Contributor


Voice revenue continues to outpace data revenue by a ratio of 3.6 to 1, according to a new study by Validas.


The study of more than 20,000 current consumer wireless bills revealed that while more than 73 percent of U.S. wireless users subscribe to voice plans, only 25 percent subscribe to data plans.

Data plans narrow the gap in the average revenue generated per line, where voice plans average $39.53 in charges per user versus data plans at $31.78.

The study with an aim to compare voice and data subscription revenue evenly focused on recurring revenue and excluded pay-per-use, overage and add-on charges.

Further analysis shows that when those charges are included, voice outpaces data by a ratio greater than 4 to 1.

“Data and apps represent growth for carriers, but voice still pays the bills,” said Ed Finegold, executive vice president of analytics for Validas (News - Alert), in a statement. “I disagree with analysts who argue that voice is becoming less important to wireless users because of apps and mobile Internet. Our studies show that wireless data users use more of everything, especially voice minutes.”

The study pointed out that the challenge for wireless users is to match actual usage to the voice plans they buy. Overage fees receive great attention because of “bill shock,” but buying more minutes than is actually needed is the more prevalent issue.

Validas finds that a majority of subscribers can save an average of more than $20 per month just by “right sizing” voice plans.

Validas provides consumers, businesses and government agencies with a simple, secure online service that optimizes wireless bills and cuts bottom line costs by an average of 20 to 40 percent.

Validas says that it eliminates wireless billing and rate plan confusion to improve customer care for wireless users. The Web-based wireless bill analysis software leverages patent-pending algorithms, processes and PDF scanning capabilities to deliver powerful business intelligence in seconds.


Anil Sharma is a contributing editor for TMCnet. To read more of Anil’s articles, please visit his columnist page.

Edited by Marisa Torrieri







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