Strategy Analytics is projecting that there will be no growth in core mobile connectivity revenue this year, meaning mobile operators will need to diversify to find new revenue streams.
Continuing mobile data traffic growth will meanwhile require operators to find even smarter and more efficient ways to add capacity to their network, the research firm said in a new report.
To achieve success in what is shaping up to be a challenging year for the industry, the company is recommending operators seek to evolve today's services with initiatives such as content bundling and fixed-mobile converged services.
Operators should also seek to leverage their mobile connectivity expertise by diversifying into new offerings s such as connected cars, smart homes and smart cities, mobile payment and mobile advertising.
The report also recommends operators accelerate the introduction of new business models that will be enabled by flexible 5G architectures if they can be adapted to current 4.5G networks.
“Innovation in services and bundling to add value while fending off customer losses in price competitive markets will be essential in 2016,” Strategy Analytics director of wireless operator strategies Susan Welsh de Grimaldo said.
“New growth opportunities exist, although some are not yet mature enough to drive large revenue streams, and operators should be preparing partnerships, strategies and network transformation to assure continued relevance in the larger ecosystem.”