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Carriers Will Need Mobile Broadband Services to Compete in Emerging Markets
Posted: 27-Mar-2009 [Source: Pyramid Research]

[Pyramid Research finds mobile broadband services will increasingly be used as a substitute for fixed boradband in emerging markets.]

Cambrige, MA -- Mobile broadband services will become necessary to remain competitive in emerging markets and will increasingly be used as a substitute for fixed broadband, according to the latest report by Pyramid Research, the telecom research arm of the Light Reading Communications Network.

"Mobile Broadband Computing Services: Complement or Substitute for Fixed Broadband" examines mobile broadband services enabled by 3G and WiMax networks on a global, regional, and market-by-market basis. Focusing on service plans offered for computing devices, this 111-page report assesses the positioning of mobile broadband computing relative to fixed broadband alternatives. Our tested framework promises to help identify the most efficient strategy for building revenue and sustaining market share in both competitive developed markets and low-income emerging environments. We also provide a five-year outlook on mobile broadband computing trends, including subscriber numbers, penetration levels, and revenue expectations on a market, regional, and global basis. Download an excerpt of this report here: http://www.pyr.com/downloads.htm?id=1&sc=PR032609_MBC

Pyramid expects fixed broadband to grow at a CAGR of 9 percent from 2008 to 2014, whereas mobile broadband computing will grow about three times as fast, totaling US$69 billion by 2014 - 30 percent the size of fixed broadband, notes Daniel Locke, Senior Analyst at Pyramid Research and co-author of the report. "In the medium term, developed markets, such as North America, will rake in the most revenue from mobile computing services, considering that operators have earmarked significant investments for HSPA+, WiMax, and LTE networks," he says. "In mature markets, mobile broadband networks can complement the fixed networks to ensure the best, ubiquitous connectivity, but more importantly, they can be the solution to the digital divide.

"In contrast, mobile broadband networks promise a wider reach and, thus, a larger addressable market in emerging markets, enabling mobile broadband access services to effectively compete with fixed broadband," Locke notes. "In many emerging markets, especially India, Africa, and the Middle East, HSPA and WiMax networks deliver geographic coverage that will not be matched by wireline infrastructure in the foreseeable future. The lack of coverage in emerging markets and rural areas of developed markets also puts 3G and WiMax as obvious choices for receiving broadband service."

Although service pricing remains a barrier to adoption, Pyramid expects declining prices and a large variety of prepaid plans to boost take-up over time in emerging markets. Furthermore, in developed markets, 4G technologies, such as LTE and 802.16m, will eventually support the capacity to provide high-bandwidth applications that will give fixed broadband customers enough reason to switch to mobile service.

"Mobile Broadband Computing Services: Complement or Substitute for Fixed Broadband" is part of Pyramid's research report series. A blend of primary research and qualitative analysis, Pyramid's research reports offer comprehensive coverage of the fixed and mobile communications space and enable those in the communications industry to stay ahead of changing market dynamics.

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