" ITREALMS: Data revenue to surpass voice by 2015 – Titilayo

Wednesday, June 23, 2010

Data revenue to surpass voice by 2015 – Titilayo

Managing Director, SWAP Telecoms and Technologies, Mr. Babatunde Titilayo has identified some future potentials of telecommunications industry in the country, predicting that data revenue would surpass voice revenue in the next five years.

Speaking at the West Africa Information and Communications Technology (WAFICT) congress’ session on CEO’s perspective future potential and challenges, said that future development would see to the full convergence of fixed and mobile internet market, which would open new market.

Also, he said, that the emergence of wireless broadband through home network and mobile device would continue to rise, while mobile network operators (MNOs) revenue from data services would grow stronger than voice revenue over the years leading to 2015.

He stressed that the emerging would be driven by data demand, new Third Generation (3G) licenses and would see to the reduction in bandwidth cost in the country.

“There would be a shift from Second Generation (2G) to 3G services, which would also open up the market space,” he said.

Mr. Titilayo pointed out that operators are currently looking at taking transformative measures and sometimes disruptive model to current business models to differentiate themselves from peers with the intense competition in the industry and provide needed quality services to ever demanding mobile users at a reduced operating cost.

“Therefore, outsourcing and forging strategic alliances with specialist companies looks the only best way out,” he said.

The SWAP boss, further predicted that with less than 60 percent teledensity, the telecom industry has not reached the maturity stage.

“We will get to 80 per cent teledensity on a per capita basis to talk of maturity so there are potentials even though at very much reduced Average Revenue Per User (ARPU) ,” he said.

He noted though the fact that there are challenges for operators for the aforementioned to be achieved, in addition to lesser revenue cum subscriber-base at the same cost.

Titilayo emphasized that in making choice to survive and continue to grow ARPU in the Nigerian telecom market, operators are faced with three choices.

“… To thrive, to survive or to die; What they can control is cost and high cost can kill any company,” he asserted.

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