Mobile Broadband Will Reach Almost 150 Million Connections in 2014

The mobile broadband market will continue its rapid growth during the next five years and generate valuable new revenue streams for mobile network operators, according to a new report published by Analysys Mason.

According to the report, there will be 148 million mobile broadband connections in Europe by 2014, when they will account for almost half of all broadband connections in the region. The usage profile of subscribers is set to change, as more casual users adopt mobile broadband as a complement to DSL- or cable-based services, usually opting for prepaid subscriptions rather than the commitment of a monthly contract. Prepaid subscriptions will account for 59% of mobile broadband connections in 2014, up from 8% in 2008.

"Mobile broadband will be the key growth driver in Europe during the next five years," argues Matt Hatton, Principal Analyst and author of the report. "As growth in voice service revenue stagnates, mobile broadband provides operators with an opportunity to tap into a valuable new revenue stream - and they can not afford to miss out."

Mobile broadband services will generate service revenue of EUR23 billion in Europe in 2014, compared with EUR6 billion in 2008, which represents a compound annual growth rate of 46%. While prepaid users will account for the majority of growth in the number of connections, contract subscribers will continue to contribute most of the service revenue, at 77% in 2014. Analysys Mason estimates that mobile broadband will account for 5.7% of all telecoms service revenue in Europe by the end of the forecast period, up from 1.7% in 2008.

"The key development in the mobile broadband market during the next five years will be the growing proportion of casual users," says Hatton. "

"These subscribers will have different usage profiles from the early adopters and landline-replacement users who have dominated the customer base until now. MNOs need to understand the demands of this subscriber segment to take advantage of the tremendous opportunity presented by mobile broadband."

Posted to the site on 11th February 2009