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 Monday, May 04, 2009

Wireless phone companies still reap the lion's share of their revenue from calls, but they're pinning their hopes on fast-growing data services.

Prices for voice calling plans continue to tumble, driving down average revenue per subscriber, a key financial metric. But the surging use of iPhones and other Internet-connected mobile devices is driving double-digit growth in data revenue.

Despite the recession, purchases of smart phones are still going strong. The high-end devices, which pack computer-like features into a handheld-sized device, accounted for 23% of U.S. mobile phone purchases by consumers in the fourth quarter of 2008, up from 4% two years earlier, says research firm NPD Group.

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Source: Cellular News.