• July 1, 2008

The highly sought-after teen mobile audience is reaching saturation, according to a new study. Market research firm MultiMedia Intelligence found that more than 16 million U.S. teens ages 12 to 17 subscribe to wireless services--up 12% from 2006. That total is only expected to grow to 17 million by 2012.

The study points to a lack of multiple handsets aimed at youth subscribers and pricing pressure in explaining stagnating growth. Still, average revenue per user (ARPU) among teens has been growing faster than the overall mobile market, according to MultiMedia Intelligence.

The report found that the third and fourth quarters are typically strongest for adding teen customers, and that Hispanic teens have become a significant sub-market, expected to hit 3 million by 2012.

The research is based on survey data of 2,000 to 2,500 teens provided annually from the Simmons National Consumer study, a service of Experian Consumer Research.

--Mark Walsh