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Forecast: Mobile comm revenue to surpass $395b
A new forecast from iSuppli indicates mobile may have the biggest year yet in 2012. With just over $340 billion in mobile communications revenue in 2011, the mobile segment is expecting more than 15% growth this year thanks to expanded 4G capabilities and an increase in mobile devices created/sold around the globe.
Long Term Evolution (LTE), the industry term for 4G wireless technology, is expected to fuel the growth as consumers opt for faster smartphones, upgrade or buy their first tablet and begin using mobile devices for more content consumption.
The mobile communications market, says iSuppli, is expected to hit at least $398 billion this year, a 17% increase from 2011.
"LTE provides much faster access speeds and lower latencies than current 3G technologies, making real-time applications like video streaming and multiperson gaming not only possible, but usable," said Francis Sideco, senior principal analyst for wireless systems at IHS. "Because of this, both consumers and wireless providers are embracing LTE. The transition to LTE is driving growth both on the consumer and infrastructure ends of the wireless business in 2012 and beyond."
Meanwhile PQ Media data shows a 30% increase in mobile and social revenue for 2011; looking ahead they predict a 30.8% growth rate for 2012. The highest mobile revenue sector was mobile content and access closely followed by mobile advertising which accounted for more than 53% of revenues.
Their research further shows that, on average, US consumers over age 12 spent 100 or more hours accessing content via mobile devices in 2011; consumers spend about 400 hours (average) online using PCs.
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