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Threefold Growth Predicted for Mobile Broadband Kit by 2012

Posted: 21st May, 2008 By: MarkJ
The latest research from Telecompaper has predicted a threefold growth in Western Europe's 'Mobile Broadband' (3G HSPA) modem (PC Cards, USB Modems and cellphone chips etc.) market by 2012. The report shows that 4.3m units were shipped in Western Europe last year, which is expected to reach 17m by 2012 (32% compound annual growth rate).

The strongest growth is expected in the Nordic countries, Greece, the Netherlands and Switzerland. The growing user base is driving an industry shift from a high-end niche device market to a lower margin mass market. Until recently, the market was dominated by three players, Option, Novatel and Sierra Wireless, but in 2007, Huawei became market leader as it spotted the opportunity for USB modems, leading to strong uptake and unexpected demand from major operators in Western Europe.

Currently, the majority of mobile broadband subscriptions for connecting a laptop to the internet are offered with a free USB when customers take out a contract of at least 12 months. Telecompaper estimates there were around 5.8m mobile data modem subscribers in Western Europe in 2007; 70% of these were situated in the UK, Germany, Italy and Austria.
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