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As the economic recession continues to affect operator results, Eastern Europe for the first time witnessed a decline in mobile service revenues.

 

In a recent report titled, “Wireless Operator Performance Benchmarking, Q3 2009,” Strategy Analytics revealed that only the Asia-Pacific region has seen a small recovery and increase in revenue growth rates.

 

This Wireless Network Strategies research assesses the operational and financial performance of 190 mobile operators, who constitute 75 percent of global subscribers. WNS research discovered that due to the recession the prepaid customer base is weakening. It also found that users are consolidating accounts and driving up prepaid churn rates. They are saving money from price cuts rather than increasing their usage. The only segment that holds any promise is that of non-messaging data services.

 

“Operators have succeeded in managing expenses, since revenues remain sluggish in almost all regions,” Phil Kendall, director, Wireless Network Strategies, said. “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.”

 

“Mobile revenue growth is coming from services beyond voice and text, with browsing on handsets and PCs still performing well. To keep revenues moving forward in the current economic climate, operators need to focus on the types of services that open up new use cases for customers,” Susan Welsh de Grimaldo, senior analyst, Wireless Network Strategies, said

 

Boston- based Strategy Analytics (News - Alert), Inc is a leading research organization that concentrates on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile and Wireless Intelligent Systems Implementation Strategies and High Frequency Market intelligence. The company has offices in the U.K., France, Germany, Japan, S. Korea and China. It associates with clients through annual multi-client services, management team workshops and custom consulting engagements.