Skip to main content

Mobile Data Service Confronts WiFi Hotspot

Sales of mobile data cards, which enable broadband access in portable computers via a service provider's mobile data network, are forecast by Infonetics Research to nearly quadruple between 2007 and 2011, when they will reach $2.9 billion.

According to Infonetics' new market study, these mobile data cards could threaten the WiFi hotspot market as HSDPA and EV-DO-based mobile broadband becomes more available, more affordable, and a higher performance choice.

However, given that a growing number of public Wi-Fi hotspots already offer free internet access, I would suggest that Wi-Fi still has the clear advantage.

"The mobile data services market is becoming more competitive, as mobile operators try to recoup their investments in 3G networks and drive up flattening ARPU (average revenue per user)," said Richard Webb, directing analyst for WiMAX, WiFi and mobile at Infonetics Research.

"Currently, mobile data services are generally too expensive for mass market adoption, but that will change with the increasingly extensive rollout of high speed HSDPA, the launch of new data plans offering increased download limits, and better subsidies for mobile data cards. The iPhone has proven that if the user experience is right, users will take advantage of mobile devices for Internet sessions."

As mobile data plans become more affordable, the report says, consumers will use mobile data cards to enable download of Internet-based content (MP3s, games, video clips) to mobile devices and for transferring user-generated content (photos, video clips, etc.). A small proportion of consumers will use a mobile data plan as their primary means of broadband access.

Other highlights from the Infonetics study include:

- Worldwide mobile subscribers topped 3 billion in 2007.

- Worldwide mobile data subscribers will accelerate dramatically over the next few years, reaching 144 million by 2011.

- Worldwide sales of smartphones reached $36.7 billion in 2007.

- Sales of mobile broadband routers are forecast to nearly quadruple between 2007 and 2011.

- In 2007, Nokia continued its strong lead in the mobile phone market, with 35 percent of worldwide revenue share, followed by Samsung and Motorola.

Popular posts from this blog

Why Europe's AI Investment Surge is Strategic

When enterprises begin treating AI budget as the line item they protect last when cutting elsewhere, the market has crossed a threshold that analysts rarely name explicitly. That is precisely where Europe now stands. A new forecast from IDC projects European AI spending will reach nearly $470 billion by 2030, expanding at a 35 percent CAGR over the next five years. European enterprises are allocating capital toward AI because the operational returns on cost efficiency, risk mitigation, and resilience are now demonstrable enough to justify sustained budget commitment. The strategic implication is significant: AI has moved from the innovation portfolio into core operational infrastructure. European AI Market Development Generative AI solutions, already embedded across enterprise deployments, are expected to account for more than 55 percent of the total market by the end of the forecast period.  Software is both the largest technology segment, at 54.9 percent of total spending in 2026...