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Call Revenues Continue To Fall

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Traditional call revenue is to continuing to decline, while mobile revenues are still growing, according to an industry report from TeleManagment Forum.

The report, “Growth Strategies: Getting the Balance Right,” highlights the need for service providers to pursue a mixture of short-term and long-term revenue growth strategies. The report combines key analysis of data gathered by the TM Forum Business Benchmarking Program with OSS Observer’s revenue and subscriber growth expectations through 2011.

“One of the key takeaways from the report is that many of the old guidelines for success are changing,” says Toni Graham, who head’s the Forum’s Business Benchmarking initiative. “Traditional call revenue is continuing to plummet, and while mobile revenues are still growing, average revenue per user is declining. This means that getting the investment balance right is essential.”

Some additional key findings in the report include:

  • Communication Serve Providers need to drive revenue growth around interactive and content-based services
  • Business Benchmarking data shows little difference in customer retention between post-pay and pre-pay business models
  • Developing countries can grow mobile penetration above 30 percent by accepting extremely low revenues per user
  • Residential Broadband and Enterprise Services promise double-digit growth through 2011 and wireline CSPs must exploit these sectors to drive revenue

“The forum’s job is provide tools necessary to help service providers improve their operational effectiveness,” says Martin Creaner, TM Forum president. “Our benchmarking program gives the global industry a unique tool to pinpoint best practices and compare business performance to their peers globally.”

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