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Mobile Broadband: More Casual Users

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February 17, 2009

Mobile Broadband: More Casual Users

By Gary Kim, Contributing Editor


A huge explosion in mobile broadband use in Europe over the next five years largely will be driven by consumers, and largely will complement, not supplant, wired broadband connections, predict researchers at Analysys (News - Alert) Mason.

 
The firm projects there will be 148 million mobile broadband connections in Europe by 2014, when they will account for almost half of all broadband connections in the region.  
 
As more casual users adopt mobile broadband, they typically will do so as a complement to tethered broadband, usually opting for prepaid subscriptions rather than monthly contracts, Analysys Mason forecasts. Prepaid subscriptions will account for 59 percent of mobile broadband connections in 2014, up from eight percent in 2008.
 
New customers will tend to behave differently from early adopters and users who have substituted wireless for wired connections. Most significantly, use will be casual.
 
At some point, continued growth of mobile broadband in the U.S. market likewise will require charging mechanisms better suited to casual users, who will not be inclined to add substantial fixed-fee subscriptions when their anticipated usage is relatively light.
 
Mobile broadband services will generate service revenue of EUR 23 billion in Europe in 2014, compared with EUR 6 billion in 2008, a compound annual growth rate of 46 percent. While prepaid users will account for the majority of growth in the number of connections, contract subscribers will continue to contribute most of the service revenue, at 77 percent, in 2014.
 
Analysys Mason estimates that mobile broadband will account for 5.7 percent of all telecom service revenue in Europe by the end of the forecast period, up from 1.7 percent in 2008.
 

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

Edited by Michelle Robart







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