A billion mobile broadband connected devices by 2016
Published on: 20th Jan 2011
Note -- this news article is more than a year old.
There will be at least one billion consumer devices connected to mobile broadband networks by 2016, reports the UMTS Forum. The study argues that while the market for connected devices remains embryonic, CE device connectivity will outstrip overall wireless market growth in the next five years. This trend is signalled by a wave of device categories from e Book readers to satnav devices that are already starting to demand access to cellular data networks.
"The collision between mobile broadband networks and connected devices - from digital cameras to personal health monitors - will see by our own estimation as many as a billion additional connections by 2016," comments UMTS Forum Chairman Jean-Pierre Bienaimé.
"The future growth of the mobile communications and CE industries are intrinsically linked", continues Bienaimé. "Over the next few years, mobile broadband will enable the cost-effective deployment of 'always on' devices for the consumer. The largest area for future growth in mobile communications is in devices like gaming consoles, e-reading devices, in-vehicle entertainment, home appliances and healthcare."
"There's no doubt that the CE industry must 'connect or perish'", adds Bienaimé. "In particular, we encourage operators and CE vendors to collaborate on developing new business models - like revenue sharing - that reduce upfront investment risk while generating new sources of value."
"It's time for operators to look beyond connectivity and access models" concludes Bienaimé. "They must play a higher-profile role in managing the whole customer experience, from novel routes to market and technology platform management to packaged offerings that help 'mobilise' CE devices."
The report warns though that potential barriers to ubiquitous mobile broadband include market and spectrum fragmentation, chip prices, and the need for a clear value proposition for LTE to be understood by CE player. Also, business models are very much the key barrier to mobile broadband enabled CE devices on a large scale. Operators thus need to regain their pivotal role in the ecosystem and to stimulate the development of mobile-enabled CE, rather than relying on the main impetus from CE vendors. A collaborative approach between operators and CE vendors will contribute creating a sustainable service business.