Mobile Broadband Primed for Major Growth

Erik Linask : Convergence Corner
Erik Linask
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Mobile Broadband Primed for Major Growth

I wrote yesterday about the promise in the newly announced partnership between Opera and Yahoo!, where the latest Opera Mini mobile browser will be bundled with the new Yahoo! Mobile application for smartphones. 
 
A new study by The Nielsen Company, commissioned by Tellabs, suggests the timing of the alliance couldn't be better, as more than seven out of ten of American's surveyed say they expect to make daily use of mobile Internet and other similar services. 
 
This revelation comes amid a major economic slump, where businesses are laying off thousands and spending is down as a whole. But, as has been suggested by many, the telecom sector, while not immune, may be better off than other industries. In fact, despite the economy, and despite their concerns about the cost, speed, and quality of service, a strong majority of respondents suggest a major increase in mobile data usage over the next year.
 
The survey, conducted in the U.S., and five Western European countries, included more than 50,000 consumers, suggests that, in these six markets, providers can expect mobile data services to be adopted by more than a quarter of current non-users. It also indicates an overall increase in usage -- including current users and non-users -- by more than 100 million subscribers. For comparison, that's about 40% more total subscribers than Verizon Wireless reports.
 
The results of the survey, announced at Mobile World Congress in Barcelona, come at a time when there is significant debate as to the viability of and need for mobile infrastructure and its support, along with government support of such projects.
 
Not surprisingly, the consensus at the GSMA Leadership Summit was that government support is a necessity, and that the build-out of mobile broadband networks is vital to economic recovery. It will also help alleviate the concerns over the quality of mobile services among survey respondents.
 
Speaking to the need for providers to build out their networks and service offerings, Pat Dolan, vice president, Europe, Middle East and Africa, Tellabs, said, "By planning urgent and strategic network upgrades, operators can quickly and cost-efficiently address users' issues and meet increasing demands on networks."
 
As for the services most likely to be adopted by current non-users, Tellabs breaks it down:
 
                                    U.S.         Europe
Mobile Internet                         49%            34%
MMS                                        38%            39%
Uploading photos                      34%            27%
Software/app download            30%            30%
Email                                       28%            32%
 
Clearly, as the scope of news from the wireless community shows, mobile communications -- and mobile data services, in particular -- are in for a significant boost. It's now up to the service providers to ensure their networks are capable of handling the growth.
 
I suspect, given the projected growth of the mobile market, alliances like that between Opera and Yahoo! are only the beginning. And, as service providers continue to seek new ways of differentiating their services, they will also look to secure a series of new relationships that will enable them to deliver greater choice to their subscribers, as opposed to the one killer app that has for some time been the Holy Grail.


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