Why carriers love smartphones: Mobile data to exceed 40% of total service revenue by 2014

Wireless carriers have played a huge role in the proliferation of smartphones and tablets in recent years, and that fact that these devices make our lives easier is hardly their motive. According to a new report from market research firm ABI Research, revenue from mobile data is expected to balloon 21.4% between 2012 and 2014, at which time it will account for 40.4% of the $1 trillion spent globally on cell phone services. ”By offering unlimited voice calls and texts, while making data the only component in a bundled plan with positive marginal costs to consumers, wireless operators as AT&T (T) and Verizon (VZ) help to prop up voice and messaging, making positive revenue contributions in the short to medium-term,” ABI research associate Ying Kang Tan said. ”Rich Communication Services (RCS) and voice and messaging APIs are a key part of their strategy of making carrier-based calls and messaging relevant to their customers.”

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This article was originally published on BGR.com