Skip to main content

Mobile Broadband Connectivity Evolution

Sprint, the U.S. wireless operator, lowered its mobile broadband prices for using a phone as a modem, but the price for using PC Cards and USB modems are unchanged. Given this change, cellular modem sales are still set to top $22 billion by 2013.

ABI Research principal analyst Dan Shey notes, "Customers want mobile broadband experiences like those provided by their PCs, meaning they want the fastest devices. Phones with at least 3G radios threaten cellular modem sales; however shipments of these modems will not exceed 30 percent of cellular handset shipments by 2011."

But to truly understand this threat, we must analyze regional penetration of 3G devices. Industrialized countries will see deeper penetration of these higher-priced devices, typically in the hands of business customers.

However convenience is important to business customers -- PC Cards and USB modems are far more convenient than phones for broadband connectivity. Adding complexity to the analysis is the growing penetration of embedded cellular connectivity in laptops and notebooks, which will reduce the need for external devices.

How does this apply to consumers and to developing world regions? Any operator can drop the price for mobile broadband using the phone as the modem, which is more amenable to a broad customer base regardless of world region.

But the questions remain -- how will this pricing change detract from use of the phone for other revenue-generating services? And, does it perpetuate the perception of the wireless operator as the dumb pipe provider?

The ABI Research study provides a comprehensive overview of the market for cellular modems. The report analyzes the factors both driving and inhibiting growth and examines how changes in the market are creating both opportunity and complexity for the value-chain participants.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Credit Scoring Service Spending will Reach $44B

Credit scoring is a method that lenders use to predict the probability a borrower or counter-party will default on loans, or incur additional charges for repayment -- also known as measuring credit worthiness. The method is a key tool in making credit affordable for individuals and businesses. It links credit products to risk potential, connecting borrowers to secondary capital markets and increasing the amount of funds available. This securing process establishes risk predictability dependent on a number of factors, determined by financial indicators and other publicly available information reported by the credit bureaus. Credit Score Market Development According to the latest worldwide market study by Juniper Research, they now forecast credit scoring services will grow by 67 percent to $44 billion by 2028. Juniper anticipates that emerging markets will experience the greatest growth -- projecting the African & Middle Eastern region to grow by 117 percent over the forecast period