A very recent Mobile Wireless Performance Report by the GSMA, the global association of mobile operators and related companies, reveals a huge gap between the mobile wireless consumption in the United States and European Union (EU). The EU market is underperforming compared to the US one and lagging behind in terms of deployment of the next-gen wireless infrastructures and the advanced systems. In the EU, the mobile wireless market is hugely fragmented which prevents mobile carriers from capturing lucrative economies of scale and scope and generally slows down the evolution of the mobile wireless ecosystem.
No secret that innovative wireless technologies such as 4G / LTE boost mobile apps development. Given the EU hasn't yet crossed the 1% threshold by total LTE connections and the USA is expected to see a 19% penetration rate by Q4 2013 - it's a no-brainer to guess which region will see the mobile apps boom.
In general, the Report states that:
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- Although the EU consumers pay less per month for mobile wireless services than the US users, the latter use 5 times more voice minutes and twice as much data,
- In the US, mobile wireless is 75% faster than the EU average,
- The EU is lagging behind the US in terms of LTE / 4G connections as percentage of total - less than 1% vs almost 15%,
- The EU market fragmentation limits consumer choices (e.g., Apple chose not to make their iPhone 5 compatible with any of the EU mobile networks),
- One major US operator - Verizon - has more subscribers than the three largest carriers in the EU - Deutsche Telecom, Vodafone Germany and Telecom Italia,
- As predicted by Cisco, in 2013 US consumers will use nearly twice as much mobile wireless data per connection as users in the EU,
- On average, the US operators earn $31,51 per user, while the EU ones earn $19,38 per user,
- Divergence between the EU and US average revenue per connection makes $21,52 vs $22,57,
- US consumers are more likely than their EU peers to use their smartphones for web related activities
Get more details from the infographic below.