Enterprise spending on telecom services and equipment will increase between 5 percent to 6 percent from year-over-year from 2014 through 2020, according to Compass Enterprises, driven by wireless data costs, which will rise from $31.8 billion in 2014 to more than $48.5 billion by 2018.
The highest growth segment will be small businesses, between five and 99 employees, where mobile data costs are projected to grow 14 percent year over year in 2017 and 12 percent in 2018.
As a result, businesses will look to “Wi-Fi First” MVNOs, such as cable operators, to lower mobile data costs, in addition to Wi-Fi connection platforms or OTT Wi-Fi/Cellular steering apps/services. A Wi-Fi First mobile service uses Wi-Fi nodes as the primary network, and cellular as the secondary network. Compass Intelligence believes initiatives to curb mobile costs for enterprise users will lead to significant disruption for incumbent mobile service providers.
This report was developed using both primary and secondary research. Included in the primary research were interviews with Stephen Stokols, CEO of FreedomPop, independent technologist Richard Hodges and Dave Fraser, CEO of Devicescape, and secondary research on other key players in the market including cable operators, MVNOs, and others. Find the report at www.compassintelligence.com.