According to new study released today by Analysys Mason, the mobile broadband market is expected to continue growing over the next five years and will create new revenue opportunities for mobile network operators.

 

The report was revealed in anticipation of the upcoming GSMA Mobile World Congress (News - Alert) held February 16-19 in Barcelona, Spain.

 

The study found that by 2014, there will be 148 million mobile broadband connections in Europe, and these will make up close to 50 percent of all broadband connections in the region.

 

In addition, as more causal users adopt mobile broadband as a complement to DSL or cable-based services, the usage profile of subscribers will change. Subscribers will also be more likely to opt for prepaid subscriptions rather than monthly contracts.

 

Prepaid subscriptions will account for more than half (59 percent) of mobile broadband connections in 2014, an eight percent increase from just last year.

 

Matt Hatton, principal analyst and author of the report, believes that over the next five years, mobile broadband will be the key driver in Europe.

 

“As growth in voice service revenue stagnates, mobile broadband provides operators with an opportunity to tap into a valuable new revenue stream – and they can not afford to miss out,” explained Hatton.

 

In fact, mobile broadband services will generate service revenue of EUR23 billion, the equivalent of $29.73 billion, in Europe in 2014, compared with EUR6 billion, the equivalent of $7.76 billion in 2008, which represents a compound annual growth rate of 46 percent.

 

Although prepaid users will account for the majority of growth in the number of connections, contract subscribers will still continue to contribute most of the service revenue, at 77 percent in 2014. By the end of the forecast period, it is estimated that mobile broadband will account for 5.7 percent of all telecoms service revenue in Europe, a 1.7 percent from 2008.

 

“The key development in the mobile broadband market during the next five years will be the growing proportion of casual users,” said Hatton. “These subscribers will have different usage profiles from the early adopters and landline-replacement users who have dominated the customer base until now. MNOs need to understand the demands of this subscriber segment to take advantage of the tremendous opportunity presented by mobile broadband.”

 

Analysys (News - Alert) Mason provides strategy advice, operations support, and market intelligence worldwide to commercial and public-sector organizations in telecoms, IT, and media. The company has headquarters in London, and offices in Cambridge, Dubai, Dublin, Edinburgh, Madrid, Manchester, Milan, Paris, Singapore and Washington DC.