Mobile Broadband 1624% increase

With 90% of the UK population now having access to 3G coverage, it seems the Mobile Modems’ finest hour has finally arrived as volume sales grew by a staggering 1624% in May 2008 vs. 2007. This booming product group is available in two main formats; the PCMCIA 3G Card Modem and the modem that connects to a laptop through a USB port, also better known as the Mobile Dongle.

The shape of the market took a significant turn in January 2008. Sales started to rocket combined with a shift of the products' form factor. While sales of PCMCIA 3G Card Modems led the market for most of 2007 and still accounted for nearly half of the Christmas sales, Mobile Modems with USB have been heavily dominating sales, with a share over 95% YTD May 2008 since the beginning of the year.

In spite of the strong year on year value growth (766%) for total mobile modem sales this May, average prices dropped considerably over the last 12 months by £20 to £20 in May 2008. This price decline is mainly driven by the fact that the majority of Mobile Dongles are purchased with a mobile data contract, in which case the modem is often given to the end-consumer for free. However, when a Mobile Modem with a USB is purchased as part of a pre-paid scheme, the end-consumer has to pay a one-off fee for the device.

Chantal Brel, Senior Account Manager at GfK, comments: "Two important barriers that have been holding back the mobile broadband market from growth are now removed: complexity and cost. Operators' mobile broadband offers have become a lot more comprehensive and affordable for the general public. And while sales of laptops with integrated 3G are still insignificant with less than 1% share in May, there is still enormous growth potential for the Mobile Modem market for the future.”

The increasing demand and usage of digital content by consumers along with the time and money spent on this sector is an important driver of the mobile broadband market. The dongles are acting as a 'personal key' to the digital world. To be able to access the Internet wherever you are and whenever you want is becoming more and more important in this technological age. Sleek design and funky colours are also key as the mobile modem must reflect consumers' digital lifestyles and values. Extremely portable, personal and plug-and-play, the market is ready to be dongled.

Dongles and Laptops

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