Average Mobile Broadband Usage Doubles in Sweden

Published on: 1st Jan 1970: 1:33am

The rapid growth of the average usage per mobile broadband subscriber in Sweden reconfirms the potential of 3G/HSPA technology to become a real alternative of fixed broadband. Experts say that making margin on mobile broadband is not impossible even at such traffic levels but the business environment is clearly becoming more challenging compared to the voice centric era.

The recently published Telecommunications Market Report of The Swedish Post and Telecom Agency (PTS) reported 4.5 times year on year increase in the total data traffic of the Swedish mobile operator networks. This impressive growth rate exceeds the 30% global quarterly increase measured and reported by Allot Communications earlier this month.

But PTS revealed an even more striking diagram: the monthly data usage of an average mobile broadband subscriber has doubled during 2008. "The 4.5 GByte/month average consumption of HI3G (Tre) is now comparable to levels seen in fixed networks, reconfirming the market potential of fixed to mobile substitution" - said Pal Zarandy, Senior Partner at Rewheel, the Helsinki based specialist telecom consulting firm.

Clearly, the breakthrough of mobile broadband is driving the mobile telecom industry through a fundamental transformation. According to Mr. Zarandy the rapid growth of data usage - and the incremental CAPEX and OPEX of handling the traffic - is an alarming sign that operators should take seriously.

Rewheel points out that network operators must align their production costs and supply chain with the incremental revenue potential of mobile data. The consultants stress the importance of improving cross-functional teamwork, since innovative players that are capable of closing the competence and mindset discontinuities between technology, marketing, finance and supply chain management teams will gain critical competitive advantage over their slow mover peers.

 

Tags: [3g]  [mobile broadband]  [opex]  [hi3g]  [Sweden]