CHART OF THE DAY: Here's Why Wireless Carriers Are Hosed

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Wireless carriers built huge businesses selling mobile voice service for a hefty monthly fee. But now that mobile phone calls are a commodity, consumers are spending much less money than they used to for mobile voice service. Add VoIP and cheap prepaid service into the mix, and this will only continue to erode in the future.

The industry is hoping that data revenue — from text messages, Internet access, multiple mobile Internet devices per person, à la iPad and Kindle — will make up for the difference. And so far, it’s coming close. But monthly bills will likely continue to shrink. (And with all the extra bandwidth required, it’s much lower-margin revenue.)

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SAI chart wireless ARPU

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