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Data traffic boosts network operators' revenues

Ian Grant
Thursday 30 April 2009 03:27

Evidence that data traffic is becoming more important to fixed and mobile network operators (MNOs) comes fromVerizon's latest quarterly report.

The US's biggest MNO, which Vodafone owns a 45% stake, reported this week that total sales hit $15.1bn, up almost 30% in the first quarter 2009 from the same period in 2008. Revenues from voice calls were up 29% to $13.1 billion, but data revenue leaped 56% to $3.6bn.

Average monthly revenue per user (ARPU) on voice calls dropped 0.3% to $50.74, but total data ARPU grew 21% to $14.16.

On the fixed line side Verizon's revenue from broadband and video were up 36% to $1.3bn as the average bill rose 14% to $69.97.

This was driven by a net increase of 299,000 net TV customers who receive TV over optical fibre, and a record 298,000 net new fibre-based internet customers.

This brought the total cable TV customers to 2.2 million, and the number of cable internet customer to nearly 2.8 million. This represented growth rates of 84% and 56% respectively, the firm said.

Verizon said the figures represented market penetration figures of 23% for cable TV and 27% for internet.

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