Data traffic boosts network operators' revenues

Evidence that data traffic is becoming more important to fixed and mobile network operators (MNOs) comes from Verizon'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.