Continued growth expected in mobile broadband devices as operators improve user segmentation
The mobile broadband device market will have a global installed base of more than 525 million units by 2016, according to a report by Strategy Analytics.
As per the research report, "Mobile Broadband Devices: 5-Year Market Forecast for Embedded and External Modems," steady growth will be witnessed for external modems over the forecast period.
Driving this expansion would be factors such as device costs, more flexible tariffs, a shift to LTE and proliferation in mobile hotspots for multiple devices, such as tablets and other consumer electronics.
On the other hand, embedded modems category likely to see slower growth due to the higher cost of embedding cellular capabilities and the need for additional data services, said the research firm.
Strategy Analytics wireless enterprise strategies service director Andrew Brown said they anticipate continued growth in mobile broadband devices as operators improve user segmentation, such as flexible plans and content bundling all underpinned by LTE.
"Mobile hotspots have been a highlight in this sector, typically enabling up to five devices at a time to connect anywhere on one data plan. The growth in the number and variety of Wi-Fi enabled devices has considerably increased the value proposition of these mobile hotspot devices," said Brown.