European mobile broadband demand rising fast

Paul Rasmussen — Fri, 23 Jan 2009 12:17:24 -0500

Demand for mobile broadband services from European consumers has grown rapidly over the last eighteen months. A study by IDC identifies four main drivers behind this surge in demand; the ever-growing availability of HSPA, the widespread use of small USB connection devices, a fall in subscription prices and an increase in laptop computer penetration.

The rise in demand is good news for European mobile operators as mobile broadband is a new source of badly needed revenue that is entirely incremental to existing revenue streams. The other good news for operators in the IDC study is that the combination of a strongly growing addressable market, low prices and increasingly flexible mobile data packages will ensure that consumer demand for mobile broadband will continue to be strong for some time to come.

However, the study does sound a note of warning. Financial constraints could slow the penetration of laptop computers which would lessen the addressable market. Also, economic concerns could inhibit consumers from committing to new service contracts.

For more on this story:
- go to Cellular News

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Paul Rasmussen — Wed, 26 Nov 2008 12:20:53 -0500

Revenues from mobile content could amount to US$52 billion in 2013 if mobile operators pursue the right strategies. If they fail to implement new business models then they could end up as simple dumb pipes, says a new report from Juniper Research.

Mobile operators need to change their mobile content business models to emphasise shared value creation. In today's mobile content environment, mobile operators retain a significant percentage of the revenues generated by the content providers who use their networks. This business model means end-users pay a high price for accessing mobile content and, ultimately, lose interest. This acts as a disincentive to content providers who either attempt to go directly to the end-user or exit the sector entirely. This is an unsustainable scenario which could severely impact on the revenue streams operators hope to win from mobile content. However, the report emphasises that mobile operators must make the first move to break this impasse.

If mobile operators can change their ARPU-driven mindsets to focus on value creation and support for their partners, they can swiftly make the change, the report concludes.

For more on this story go to Mobile Europe

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Revenue Streams

European mobile broadband demand rising fast

Smart pipe or dumb pipe ... the operator's choice