It should come as no surprise that downloads from mobile devices are growing rapidly. From surfing the web to sending off important emails, we're making the most of the wireless technologies now available.
According to the Australian Bureau of statistics, in 2013 Australians downloaded 19,636 terabytes of data from mobile devices and one telco boss believes that number could grow by 50% in the next 12 months alone. In 2012, we downloaded only 9,943 terabytes.
Despite the rapidly growing use of mobile devices for downloads, Singapore Telecommunications (ASX: SGT) managing director of networks, Vic McCelland, believes the growth rate will peak in two years. He believes the way to profit from this trend is to give customers more of what they want and less of the services they don't use as much. "We want to offer what customers want to use rather than the blunt tool we've got today."
Vodafone is part-owned by Hutchison Telecommunications (Aus) Ltd (ASX: HTA). Its chief marketing officer Kim Clarke said: "Our customers have been using over 60 per cent more data in 2013 than they did in the year before."
According to The Australian Financial Review, Mr McCelland believes the industry is moving in "waves" and the telco needs to position itself to benefit from the next wave early. The first wave was phone calls, the next was text messaging and we are currently experiencing the third wave: mobile data: "We know in Australia it won't peak for a couple of years but at some point revenue will start dropping off so we need to have something else coming in behind it."
The fourth wave will bring together online providers like Google's YouTube and telcos such as Telstra Corporation Ltd (ASX: TLS), Optus and Vodafone, to offer more services for less. The US's AT&T recently announced it will introduce sponsored data, which makes companies pay for customers accessing their websites which, in turn, will pay for superior services like HD quality streaming.
Foolish Takeaway
Although subscriber rates are slowing, mobile data is booming and providing a new source of growth for providers. According to The Australian Financial Review, revenues for the big three telcos will increase by $500 million in 2014.
