Will Enterprise Account Consolidation Threaten Near-Term Mobile Data Revenue Growth?

Wednesday, 7. July 2010

Product Description

This IDC study examines some of the issues raised by enterprise-liable users’ adoption of consumer-oriented data/application services. Specifically, it analyzes the potential of such usage to cause an operator backlash among enterprise wireless buyers/administrators and the financial impact such a backlash could have on operators.

“Were it not for the high-profile merger/acquisition announcements made over the last 12 months, 2004 would have likely been remembered as the year in which mobile data finally reached a point of salience in both the business and consumer markets. But, although this mobile data growth is great news for the industry as a whole, the nature of the development means that it has a very real potential to raise significant issues in the enterprise segment,” said Keith Waryas, research manager for IDC’s Wireless Business Network Services program. “At the core of the problem are conflicting trends in the market. On one hand, enterprises have generally begun to accept mobile as a cost of doing business and are increasingly centralizing their mobile spending into enterprise-liable contacts to gain a level of usage and, more important, cost control. On the other hand, business end users represent one of the key segments for mobile data sales, as they are currently among the heaviest users of mobile data services, including those targeted at consumers, and demonstrate the highest interest with regard to new data offerings. Operators will therefore face a critical challenge in making sure business end users continue to have access to the consumer services/applications they want, which plays directly into carriers’ overall data revenue generation plans, while at the same time making sure that this end-user activity does not create conflict between the network provider and the enterprise wireless buyer/administrator.”

Will Enterprise Account Consolidation Threaten Near-Term Mobile Data Revenue Growth?