Mobile broadband market is expected to cross $137 Billion mark by 2014 primarily due to the unavailability of fixed-line broadband access in the emerging markets of Asia.
According to the industry consulting firm Ovum, by 2014, mobile service revenue of broadband-service providers will reach $137 Billion globally, representing an increase of 450% over 2008, as reported by YAHOOTECH.
By 2014, the number of users accessing mobile broadband on laptops and handsets is expected to surpass two billion, an increase of 1,000% from 181 Million users in 2008. Asia Pacific region is likely to emerge as the key driver of mobile broadband industry. Moreover, the number of mobile broadband handset users is anticipated to surge to 1.8 Billion by 2014 from 158 Million in 2008. 258 Million new users will access mobile broadband services on laptops in the next five years.
Developing nations such as China and India will drive growth in the mobile broadband market. Due to the lack of fixed-line broadband access in these countries, millions of people will increasingly look for mobile Web access.
As the competition reduces prices and majority of customers come from middle class population, the number of mobile broadband users is expected to outpace the mobile broadband market revenue growth. Handsets will continue to dominate the market as compared to laptops. Adoption of 3G and 4G enabled handsets will contribute significantly to the growth in mobile data services.
However, the firm cautions that this tremendous increase in the adoption of mobile broadband could result in a drastic decline of carrier’s ARPU (Average Revenue Generated Per User), The total revenue is expected to grow at merely 44% of the growth in subscription.
Several factors may lower the carriers’ ARPU such as less revenue from emerging markets, tough competition for mobile broadband access and the probable introduction of prepaid tariffs to boost broadband adoption.
According to a Research Analyst at RNCOS, “The bulk growth in the global mobile broadband market will be posted by the developing markets due to lack of fixed-line broadband services there. Mobile broadband players are expected to exploit this gap to expand their business and increase their profit margins. In future, mobile broadband will emerge as a highly profitable utility service whose costs and growth could be managed accordingly.”
Related Market Research Reports:
Indian 3G Mobile Forecast to 2012
Restructuring and 3G - New Dimensions for China Telecom Sector
Turkey Telecom Sector Forecast to 2012
