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

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic