Fixed broadband losing out to mobile broadband, say analysts

Friday 10 October 2008

A report published by Analysys Mason's Rupert Wood, addressed the topic of fixed broadband vs. mobile broadband this week. Wood, the research and consultancy firm's principal analyst suggested that fixed-line operators stand to lose market share in the broadband business due to the sharp and ever increasing popularity of mobile broadband.

Analysys Mason confirmed that mobile broadband now accounts for nearly 20 per cent of broadband subscriptions in European markets. It was also found that Austria mobile's broadband accounts for 30 per cent of the broadband market. It is estimated that the maximum stake of mobile broadband connections could reach 40 per cent.

Analysys Mason forecast that approximately a quarter of broadband-equippd sites will be mobile-only by 2013, and that 55 per cent of broadband-equipped sites will have access to at least one mobile broadband subscription.

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Figure 1: Broadband-equipped sites in Europe, split into fixed-only, fixed and mobile, and mobile-only, 2006-2013 [Source: Analysys Mason, 2008]

Summing up the apparent trend, Analysys Mason wrote: "Fixed broadband is beginning to lose its edge to mobile, and fixed operators need to rethink their strategy." They expanded: "For fixed service providers, the pertinent questions is, 'Where do fixed networks provide a unique advantage?' The choice between fixed and mobile varieties of broadband makes the potential purchaser ask, 'What services am I buying this for?', and therefore at a retail level, fixed service providers will need to sell broadband-based services based on the unique capabilities of fixed networks."