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Why Aren't Companies Reaping the Mobile Broadband Harvest? Inertia

Fixed Mobile Convergence

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Why Aren't Companies Reaping the Mobile Broadband Harvest? Inertia
February 10, 2009
By Vivek Naik, TMCnet Contributor

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Top 10 Broadband, a broadband comparison site, reportedly estimates that Sky and Talk Talk are losing out on substantial shares of the $53.28 million per month mobile broadband business available in the United Kingdom due to their reluctance to ramp up mobile broadband offerings.

 
The evaluation is based on available figures, such as this: 200,000 new mobile connections are added every month at an average contract of $ 22.2 per month over 12 months. When considering existing and added connections, the monthly average available business is $53.28 mil per month in this segment alone, Top 10 says.
 
And consider this: While the home broadband market demand is steady and encouraging, the pertinent figure is that mobile broadband grew from 32 percent of all broadband sales in October of 2008 to more than 50 percent in January, 2009. By comparison, the mobile broadband sales in January, 2008, were only 10 percent of total broadband services. This gives an idea of how the trend graph took shape.
 
Vodafone, 3 and T-Mobile were the key players to dominate this area. Virgin Media and O2, sensing major business potential, modified their marketing strategy and have recently made a late surge towards the top three positions. Unfortunately, Sky and Talk Talk are lagging behind.
 
“TalkTalk and Sky must be looking into ways of offering mobile broadband either as a standalone product or as part of a bundled deal – failing to do so would amount to commercial suicide,” said Jessica McArdle, marketing manager at Top 10 Broadband.
 
Other counter-balancing observations to be factored in while looking at these figures are that the site started only in January, 2007, and it takes time for any new business to establish itself. Prospective customers generally seek guidance and referrals from their social network, as reported by TMC. For this kind of peer based approval to gain in momentum, a few people have to first try out the stuff, get satisfied, only then post comments giving a thumbs up, and await multi pronged open feed-back.
 
Top 10 Broadband is visited by 1 million-plus different users every month. Its tools assist those dithering about broadband procurement selections to make sound logical decisions based on their requirement inputs.
 

Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.


Vivek Naik is a contributing editor for TMCnet. To read more of Vivek's articles, please visit his columnist page.

Edited by Michael Dinan

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