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Friday May 8, 2009
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 Hey everyone--we're in a recession! Bet you didn't know that. New data from ABI Research suggests that the economic downturn is finally hitting the wireless industry in earnest, saying that the average revenue per users (ARPU) of
mobile users worldwide was down between five and 15 percent in the fourth
quarter of 2008 compared to the year-earlier period, according to MediaPost.
That's significant because it means that cell phone subscribers are choosing less expensive plans and spending less money overall on their handsets--which directly affects profit margins. One bright spot: the report said that the overall decline was offset in part by increasing mobile Web use, leading to revenue gains of 15 to 20 percent in that category. ABI expects that growth to continue, as more users explore the mobile apps and other data services.
Voice traffic was also up from between two and 10 percent, but that was offset by overall declining revenue and minutes use, according to the report. I wonder if phones that look like that red LG Lotus in the picture have something to do with all of this. I mean, yeesh--look at that thing.
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