- The prepaid customer base is streamlining; users are consolidating accounts, driving up prepaid churn rates;
- Users are taking advantage of price cuts on voice and text to save money rather than increase usage;
- New, rather than existing, users and service patterns are driving revenues; non-messaging data services represent the only significant source of revenue growth in this sector.
“Operators have succeeded in managing expenses, since revenues remain sluggish in almost all regions,” comments Phil Kendall, Director Wireless Network Strategies. “Despite the revenue problems, global EBITDA margins have held firm and cash flow is remarkably strong as operators take more pragmatic approaches to CAPEX needs.”