Mobile Subscriber APRU Drops 15%Mobile Subscriber APRU Drops 15%

The global economic slowdown is making consumers spend less on their mobile phone services, according to a new report by ABI Research.

The report, titled "Mobile Subscriber APRU, Voice, Messaging, and Data Traffic Forecasts," said the global average revenue per user had a year-over-year drop between 5% and 15% in the fourth quarter of 2008. The dip was primarily caused by uncertainty with the economy, as well as declining revenue from voice traffic, which has been the mobile operators' bread and butter.

The uncertain economy has also caused a strong dip in demand for handsets, and manufacturers like Sony Ericsson and Motorola are feeling the sting. Additionally, other reports suggest that wireless subscribers are looking to cut back on extra services like text messaging or mobile e-mail in order to cut monthly costs. Consumers may also opt out of their contracts and move to lower-cost prepaid providers like Boost Mobile, Leap, Virgin Mobile, and MetroPCS.

In North America though, the ARPU remained relatively steady thanks to the increased adoption of smartphones with mobile data plans, ABI said. Handsets like Apple's iPhone, Research In Motion's BlackBerry Storm, and the T-Mobile G1 have each sold more than a million units, and smartphone sales are expected to defy the recession.

Additionally, ABI said mobile Internet-related revenue grew between 15% and 25% year over year for the fourth quarter, and that trend is expected to increase as carriers roll out 4G networks.

"The evolution to LTE along with 3.5G technologies, is not just about offering end-users faster download speeds. It is also about capacity," ABI Research VP Jake Saunders said in a statement. "Our research into mobile network traffic shows that the ramp-up in traffic is effectively exponential."

Most companies are just starting the hard work of mobilizing workforces by bringing the software they use to smartphones. information analyzed this issue in an independent report, and it can be downloaded here (registration required).