Skip to main content

Mobile Hotspot Router Sales to Exceed $5 Billion

According to the latest market study by ABI Research, beyond the typical bandwidth caps and network-based throttling efforts, a fundamental shift is about to begin in mobile data communications service delivery.

Mobile network operators around the globe have been ridiculed by their customers, due to perpetually poor service performance and declining user experience, as millions of new devices look to connect to the Internet.

It's true, many mobile operators have not scaled their broadband network capacity fast enough to meet the growing demand, and so they essentially crippled their service offering -- alienating their customers in the process.

A solution is close at hand, however, in the form of a smartphone-sized device that connects several Wi-Fi-enabled devices to a single mobile broadband subscription: the mobile hotspot router.

Shipments in 2011 are expected to reach 7.1 million units with an estimated end-user revenue value of $1 billion.

Instead of tackling mobile data service shortcomings by merely adding more core network capacity, network operators are increasingly looking for data signaling optimization and device aggregation techniques in the Radio Area Network (RAN), where mobile hotspot routers help alleviate these challenges.

"The first products to reach the market in 2009 generally overshot the mass consumer population," says Jeff Orr, group director, mobile devices at ABI.

Products were very complex to set up and catered to an IT-managed remote workgroup environment, such as a construction site or field emergency response team.

Advancements have been made by vendors to reduce the size and complexity of mobile hotspot routers. The solutions also address imminent carrier challenges as they expand operations to support the deluge of mobile data user demands.

Network operators want to grow the subscriber base profitably, but risk further alienating users who feel that the internet access continues to slow down as more devices are sold and activated. Clearly, punitive business practices that show contempt for customers are not a solution to the problem.

"The mobile hotpot router is the only standalone device capable of being distributed to the end customer that reduces the number of subscribers while growing ARPU," adds Orr.

The mobile routers also have the advantage of not consuming mobile data at the same rate as directly-connected devices -- meaning, users tend to interact with only one device at a time.

In 2016, rapid adoption of mobile hotspot routers will be rewarded with more than 60 million annual shipments and an approximate end-user revenue value exceeding $5 billion.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Why a Distributed Workforce will Raise Productivity

While most senior executives at progressive organizations have already evolved their human resource policies to accommodate employee desire for flexible working models, others still resist change. Unfortunately, many of the laggards are now experiencing the "Great Resignation" phenomenon. The global pandemic required business leaders to rethink when, where, and how their knowledge workers and front-line employees perform their work. Yet even with the ongoing pandemic recovery slowly underway, some organizations are still trying to determine their workforce approach. According to the latest worldwide market study and recent survey data from International Data Corporation (IDC), stability and geography will likely define the balance of future work strategies. Distributed Workforce Market Development On a global basis, physical office sites are expected to be the dominant location for work as legacy organizations eventually find themselves in a more stable environment. However,