Mobile Broadband Taking Off? Good News For Carriers

Dan Frommer | March 13, 2008 7:33 AM

The number of mobile broadband subscribers is projected to more than quadruple in the next four years -- from 230 million worldwide at the end of 2007 to 970 million subs by the end of 2012, according to research firm In-Stat. If true, that's great news for several industries: Carriers offering mobile broadband services, media companies looking to push content to mobile devices, and advertising firms looking to sell mobile ads.

As customers spend less money on plain-vanilla cellphone calls, carriers like AT&T (T), Verizon Wireless, and Sprint Nextel (S) are looking to grow by selling wireless data services, including mobile broadband subscriptions. And subscribers with access to the fastest networks are worth more: During AT&T's Q4 earnings call, execs said subscribers with "3G" phones spend an average 20% more per month on data services than those accessing the carrier's slower, "2G" network.

The trouble with these stats: It's awfully tough to forecast service uptake. See: The dot-com bubble, when most people significantly overestimated how fast broadband would grow. Mobile broadband growth is already slowing -- In-Stat expects subscribership to grow 63% this year to 375 million, down from 91% growth last year.

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5 Comments

Adrian Hall, Bytemobile (URL) said:

Mar. 13, 4:52 PM

The surge in mobile broadband subscribers is no doubt a boon for carriers and content providers, as well as a positive indicator that consumers are eager to embrace the mobile Web. Ultimately, however, it is the user experience which will provide the final push towards widespread adoption. Faster speeds, easy navigation and unimpeded access to the Web are all key components in providing the PC-like browsing experience that 96 percent of participants in a recent study commissioned by Bytemobile said they expect from the Mobile Internet.