US to Generate $100bn in mobile data revenue in 2014

While there’s no doubt that US is one of the most data hungry countries in the world, soon it will reach a new milestone, which will prove this fact. According to a new report from analyst Chetan Sharma, data revenue in the country will soon reach the $100 billion mark. By soon he means this year itself, at least by the end of it.

Last year this figure was $90bn, so an 11% growth looks possible. The report also adds that this figure will put US ahead of other data hungry countries like China and Japan. Given that these countries also have a large number of smartphone data users; this should be a great achievement.

Growth in the mobile data sector is further fuelled by the reliance on mobile data than Voice calls by users. In fact, it was only last year that the revenue for mobile data exceeded voice for the first time in history of the country. This clearly shows that data revenue is growing rapidly and with a further increase in the number of smartphone users this year, this figure can be achieved.

However, this does not mean that the data costs are going to go higher. In fact, there are reports which say this year, network carriers are going to cut down costs for attracting more customers. For example, T-Mobile is already offering data plans at low cost like its Simple Choice Plan which doubles data allowance. This would further force other players like Verizon and AT&T to cut down data rates. So, in the coming months, data plans are expected to become cheaper than before.

More and more users now use smartphones for everyday tasks instead of desktops mainly because of the availability of high speed wireless plans just like broadband. Also, with new applications requiring huge amounts of data, like Cloud streaming, many users are opting for high data plans even if they are costly.

The increase in revenue to this extent could also be due to the high data costs as compared to other countries. According to a report from Economist, currently the country has one of the costliest data plans in the world. When compared with other countries like China and U.K, the average data plan in the country was as high as $85, as compared to $24 and $9 in those two countries respectively.

But, even though the data costs are so high in the country, people still rely on mobile data for majority of their work, which eventually generates such huge amounts of revenue for the carriers.

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About the author

Joel is an experienced blogger who covers all kinds of news relating to tech. He is a huge fan of Android and can be seen playing around with his phone in his spare time.