Commoditization in mobile telecoms

Are market shares converging due to price competition, not differentiation? Are ARPU spreads contracting due to lack of real differentiation? We studied 50+ markets and are inclined to answer: Yes to both. But take a look at the data yourself.

Continued ARPU pressure fuels commoditization

Competitive pressure continues to prevail in the global mobile telephone industry. The result for telecommunications providers worldwide has been stagnant growth, and a steady but seemingly inevitable commoditization of the industry’s primary services.

Strategy&’s annual commoditization tracker analyzes the state of play in markets across the globe by looking at two key metrics: changes in the spread between mobile operators with the largest and smallest share of each market’s subscribers, and in the spread between those with the highest and lowest average revenue per user.

Mobile commoditization trends by market

Market:
 
 

Please note: 2021 is based on Q1 and Q2 data.
ARPU: Average Revenue Per User.
Source: GSMA; Telegeography; Strategy& research & analysis

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Dr. Florian Gröne

Dr. Florian Gröne

Global Telecoms Advisory Leader, Strategy& US

Udayan Gupt

Udayan Gupt

Director, Strategy& US

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