According to a recent report from ABI Research, while cellular modem shipments in 2006 were below expectations, the sector should hit $10 billion in revenues by 2012 with shipments exceeding 68 million. ABI's principal analyst Dan Shey explained that the fundamental driver of this momentum will be "the proliferation of 3G networks and better cellular broadband pricing... particularly in North America and Europe." At this time, however, the total monthly costs are too high to encourage significant modem adoption by consumers, Shey said.

For more on the ABI study:
- see this press release