Since the advent of smartphones, robust data growth has been the bedrock of the telecommunications industry. Mobile-data traffic has exploded, propelled by increased mobile adoption, growth in smartphone penetration, larger phone screens, and the proliferation of video consumption. While growth slowed after the initial boom, it stabilized at 70 to 100 percent per year throughout most of the early 2010s.
However, this era of exponential growth is potentially ending as customers rely more on Wi-Fi networks, advanced algorithms compress data, smartphone use becomes saturated, and video streaming and app usage reach maturity. The implications are profound: Analysts forecast that mobile-data growth rates in most mature markets will fall to between 10 and 18 percent year-over-year in the next four years. This slowdown is already heightening competition, driving new product launches, and forging unlikely alliances—and it could continue to reshape the industry in the years to come.
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