ROCHESTER, N.Y.—Carriers should look to non-voice services—particularly ring tones—to increase revenues, according to two studies released this week.
A survey conducted by Harris Interactive for ForceNine Consulting and Wirthlin Worldwide indicated non-voice services other than text messaging are in the early stages of consumer acceptance and growth. About 40 percent of non-voice service users pay extra for those applications, although those charges represent less than 10 percent of their cellular bills.
“Currently, revenue from non-voice services represents only a small fraction of carriers’ average revenue per user (ARPU),” said Andrew Roscoe, a ForceNine partner. “Because non-voice services are in their early, high-growth stage, they are already having an important impact on ARPU growth, as was pointed out by several carriers in their second-quarter 2004 earnings announcements.”
Meanwhile, mobile analyst firm Consect’s 2004 Mobile Music Report indicates U.S. ring-tone sales have doubled in the in the last year, reaching $300 million in 2004.
“With ring-tone revenue in 2004 more than double that of 2003, the U.S. mobile music market has finally come of age,” said Mark Frieser, Consect’s chief executive officer. “Surpassing $300 million this year, ring-tone sales are becoming a significant component of the music industry’s business, exceeding that of digital music downloads even at this early stage of the market.”
