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Mobile Broadband (3/3.5G) Growth Predicted
By: MarkJ - 03 July, 2007 (1:22 PM)

New research from analyst firm Berg Insight has predicted that the European mobile broadband market will reach 5 million connections by the end of this year, with a staggering 30 million expected for 2011!:

Austria and Sweden are leading the way with hundreds of thousands of consumers signed up to affordable high-speed Turbo 3G network services delivering data rates up to 7 Mbps. Mobile operators like 3, A1 Mobilkom and Telenor are getting this right, commented Tobias Ryberg, senior analyst, Berg Insight.

Ordinary people have already replaced their old bulky desktop PC with a new slim wide-screen notebook. Now, thanks to Turbo 3G, they can also connect to the Internet anywhere for just 20 euros per month. Berg Insight forecasts that the total value of the European mobile broadband market will grow at an annual compound growth rate of 22.9 percent over the coming five years to reach 3 billion.

The scale of such figures suggest a future where existing Wi-Fi Hotspot services could find themselves under significant threat from mobile phone operators. This might help to explain some of the recent price reductions we've been seeing, a competitive factor that could become more aggressive in the future.

However it's not just Wi-Fi that may face such pressure, any advent of affordable mobile broadband technology could also impact upon fixed-line rivals. Presently mobile services are unable to compete, especially on bandwidth allowance, but that may not always be the case.

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