Mobile broadband to hit $223bn within four years
Mobile broadband will be worth a staggering $223 billion globally within four years, according to figures from research firm Ovum.
The company said the total market for mobile data services would more than double, from just over $100bn last year, driven by increasing sales of smartphones and tablets.
However, while overall revenues might be on the increase, Ovum warned that network operator income wouldn’t keep pace with new connections, meaning mobile providers would have to accept less revenue per user.
“A key finding is that growth in the number of global connections will far outstrip revenues – connections will grow at 28%, while revenues will increase by 17%,” said Steven Hartley, Ovum principal analyst.
The soaring demand, combined with smaller increases in revenue, could make it even more difficult for operators to cope with burgeoning demand for data, the Ovum report suggested.
“Mobile broadband service providers will need to develop strategies that meet the demand for mobile internet access while managing costs and securing customer loyalty,” said Hartley.
Mobile phone companies have been quick to cut “unlimited” internet bundles as traffic demand puts strain on networks.