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Long-term value of wireless users expected to increase

TORONTO -Average revenue per user is down among U.S. wireless users, but the adoption of wireless data services is increasing, according to a report by research and consulting firm Advanis.

The firm’s Mobile Metrics report indicates that while the immediate revenue-generating value of consumers is in decline, long-term value is expected to rise as uptake in lucrative data services increases. With 15 percent of cell-phone users in the third quarter saying they’ll likely switch providers during the next months, implications to carriers could be substantial.

“The value of the likely switcher segment appears to be changing,” said the report. “While these subscribers are trending closer to the average in terms of immediate revenue potential, brisk data service adoption suggests they’ll be higher-value subscribers in the medium and/or longer term.”

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