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Standalone Mobile Hotspot Device Revenue Approaching $500 Million in 2010

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Note -- this news article is more than a year old.

The concept of a mobile hotspot, a device that connects to a mobile broadband connection and provides a bridge to a Wi Fi LAN, is relatively new, with the first standalone mobile hotspot devices only appearing in the last two years.

Yet, the number and types of mobile hotspots is growing almost daily and In-Stat forecasts that revenue from standalone mobile hotspot devices will approach $500 million by the end of 2010. Mobile hotspot service revenue is projected to reach into the tens of billions of dollars annually.

"Mobile hotspot device shipments are expected to grow for several years, but we expect some jockeying for the top position occurring between device categories," says Allen Nogee, Principal Analyst. "Smartphones with embedded mobile hotspots have already cut into shipments for battery-powered mobile hotspot devices. Automotive hotspot devices might do the same. Standalone mobile hotspots will take on a new life again as they are positioned as home gateway devices for mobile operators selling broadband services to the home."

New research by In-Stat reveals the following:

  • Smartphone mobile hotspot functionality allows a mobile operator to typically charge an additional $20/month.
  • While many automobiles will have mobile hotspot capabilities, only a small percentage of these car owners will activate their hotspot and pay for monthly services.
  • A large market opportunity exists for mobile operators to provide WiMAX or LTE broadband services to home users and compete with DSL and cable providers.

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Tags: mifi  wi-fi