Mobile Broadband in Europe and North America

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Mobile broadband based on HSPA/LTE and other mobile communication standards hastaken off as an important technology for connecting mobile PCs to the Internet. The evolutionis led by Europe where HSPA now accounts for 12 percent of the total number of broadbandconnections, compared to 5 percent in North America. The concept that was first launched asan exclusive business service is now a mass-market consumer product sold on an intensivelycompetitive market. Consumers are utilizing their mobile broadband connections extensively,pushing the networks to their capacity limits. In fact the overwhelming majority of data trafficon mobile networks is today generated by notebook PC users that surf the Internet, notsmartphone users.Berg Insight estimates the total global number of shipped mobile broadband devices in 2008to 37.2 million, with Europe and North America accounting for 18.2 million units and 3.7million units respectively. The European device market grew by 222 percent in 2008, but islikely to cool off in 2009 as operators start reducing their inventories. Growth is forecasted tocontinue with shipments reaching 68 million units in 2014, fuelled by integration in notebookPCs and strong demand for mobility. Also the North American device market will experience arapid growth to reach 45 million shipments in 2014. The ASP in Europe was reduced fromabout ' 100 in 2007 to ' 45 in 2008. The US device market is still focused on business usersand the Chinese vendors Huawei and ZTE have not managed to capture significant marketshares, whereby the ASP remained as high as US$ 150 in 2008.The European mobile broadband service market continues to grow rapidly, with demandfuelled by declining prices, improved user experience and massive marketing campaigns.Berg Insight estimates that the total number of mobile broadband subscribers in EU 23+2grew by 74 percent to reach 14.6 million in 2008 while the estimated operator revenuesreached ' 3.4 billion. The European mobile broadband market is expected to grow at acompound annual growth rate of 14.3 percent to reach ' 7.6 billion in 2014. While the expected high demand from the PC-industry will lead to higher shipment volumes forembedded modules, the vast majority of new subscribers will only be occasional usersgenerating lower network ARPU.Berg Insight estimates that the number of mobile broadband subscribers in North Americawas about 4 million at the end of 2008. The estimated service revenues were about US$ 2.9billion and are expected to grow at a compound annual growth rate of 13.9 percent, to reachUS$ 6.3 billion in 2014. The growth in North America will accelerate when operators start totarget the consumer segment with attractively priced proposals. At a later stage, theincreasing number of notebooks featured with embedded modules will drive usage asconsumers do not need to make the initial hardware investment.Huawei has established itself as the world's largest supplier of mobile broadband terminalsand has a particularly strong foothold in Europe. In North America, the local vendors SierraWireless and Novatel Wireless still hold strong positions on a market where EVDO is thedominant network technology. Option was previously the main supplier in Europe, prior toHuawei's entrance and launch of the USB modem and is now ranked second. ZTE is thelatest player to join the race and have adopted an aggressive strategy to capture marketshares. Two of the largest telecom vendors ' Ericsson and Qualcomm ' entered the marketfor embedded solutions in 2008 and managed to sign contracts with many of the majornotebook vendors.

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Mobile Broadband in Europe and North America

  1. 1. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email!Mobile Broadband in Europe and North AmericaPublished on May 2009 Report SummaryMobile broadband based on HSPA/LTE and other mobile communication standards hastaken off as an important technology for connecting mobile PCs to the Internet. The evolutionis led by Europe where HSPA now accounts for 12 percent of the total number of broadbandconnections, compared to 5 percent in North America. The concept that was first launched asan exclusive business service is now a mass-market consumer product sold on an intensivelycompetitive market. Consumers are utilizing their mobile broadband connections extensively,pushing the networks to their capacity limits. In fact the overwhelming majority of data trafficon mobile networks is today generated by notebook PC users that surf the Internet, notsmartphone users.Berg Insight estimates the total global number of shipped mobile broadband devices in 2008to 37.2 million, with Europe and North America accounting for 18.2 million units and 3.7million units respectively. The European device market grew by 222 percent in 2008, but islikely to cool off in 2009 as operators start reducing their inventories. Growth is forecasted tocontinue with shipments reaching 68 million units in 2014, fuelled by integration in notebookPCs and strong demand for mobility. Also the North American device market will experience arapid growth to reach 45 million shipments in 2014. The ASP in Europe was reduced fromabout 100 in 2007 to 45 in 2008. The US device market is still focused on business usersand the Chinese vendors Huawei and ZTE have not managed to capture significant marketshares, whereby the ASP remained as high as US$ 150 in 2008.The European mobile broadband service market continues to grow rapidly, with demandfuelled by declining prices, improved user experience and massive marketing campaigns.Berg Insight estimates that the total number of mobile broadband subscribers in EU 23+2grew by 74 percent to reach 14.6 million in 2008 while the estimated operator revenuesreached 3.4 billion. The European mobile broadband market is expected to grow at acompound annual growth rate of 14.3 percent to reach 7.6 billion in 2014. While theexpected high demand from the PC-industry will lead to higher shipment volumes forembedded modules, the vast majority of new subscribers will only be occasional usersgenerating lower network ARPU.Berg Insight estimates that the number of mobile broadband subscribers in North Americawas about 4 million at the end of 2008. The estimated service revenues were about US$ 2.9billion and are expected to grow at a compound annual growth rate of 13.9 percent, to reachUS$ 6.3 billion in 2014. The growth in North America will accelerate when operators start totarget the consumer segment with attractively priced proposals. At a later stage, theincreasing number of notebooks featured with embedded modules will drive usage asconsumers do not need to make the initial hardware investment.Huawei has established itself as the worlds largest supplier of mobile broadband terminalsand has a particularly strong foothold in Europe. In North America, the local vendors SierraWireless and Novatel Wireless still hold strong positions on a market where EVDO is thedominant network technology. Option was previously the main supplier in Europe, prior toHuaweis entrance and launch of the USB modem and is now ranked second. ZTE is theMobile Broadband in Europe and North America Page 1/7
  2. 2. Find Industry reports, Company profilesReportLinker and Market Statisticslatest player to join the race and have adopted an aggressive strategy to capture marketshares. Two of the largest telecom vendors Ericsson and Qualcomm entered the marketfor embedded solutions in 2008 and managed to sign contracts with many of the majornotebook vendors. Table of ContentTable of ContentsTable of Contents........................................................................................................................ iList of Figures............................................................................................................................. vExecutive summary.....................................................................................................................11 Market environment .............................................................................................................31.1 Internet usage..............................................................................................................31.2 The European broadband communications market ...................................................41.2.1 Fixed broadband market.......................................................................................51.2.2 Wireless market.....................................................................................................81.3 The North American broadband communications market........................................101.3.1 Fixed broadband market.....................................................................................111.3.2 Wireless market...................................................................................................122 Evolved 3G network technology........................................................................................152.1 Wireless technology roadmap...................................................................................152.1.1 GSM.....................................................................................................................162.1.2 3G networks UMTS/WCDMA 3GPP Release 99 (Q1-2000) .............................172.1.3 HSDPA 3GPP Release 5 (Q1-2002) ................................................................182.1.4 HSUPA 3GPP Release 6 (Q4-2007) .................................................................202.1.5 HSPA+ 3GPP Release 7 (Q2-2008).................................................................212.1.6 HSPA+ 3GPP Release 8 and further evolution (H1-2009)...............................232.1.7 LTE 3GPP Release 8 (H1-2009) .......................................................................232.1.8 The CDMA/EVDO track .......................................................................................252.1.9 Other wireless technologies................................................................................272.1.10 Comparison of technologies...............................................................................282.2 Evolution of network infrastructure............................................................................312.2.1 From traditional to evolved network architecture................................................312.2.2 Improving network backhaul capacity ................................................................352.2.3 Expansion to new frequency bands....................................................................392.3 Evolution of wireless chipsets ...................................................................................403 Mobile broadband device vendors....................................................................................433.1.1 USB modems ......................................................................................................433.1.2 Embedded solutions ...........................................................................................443.1.3 PC-cards..............................................................................................................463.1.4 Gateways.............................................................................................................473.2 Mobile broadband terminal vendors .........................................................................483.2.1 Huawei.................................................................................................................493.2.2 Option..................................................................................................................50Mobile Broadband in Europe and North America Page 2/7
  3. 3. Find Industry reports, Company profilesReportLinker and Market Statistics3.2.3 Novatel Wireless..................................................................................................533.2.4 Sierra Wireless.....................................................................................................553.2.5 ZTE ......................................................................................................................573.2.6 4G Systems .........................................................................................................583.2.7 AnyDATA .............................................................................................................583.2.8 BandRich.............................................................................................................583.2.9 Onda Communications .......................................................................................593.2.10 Teltonika ..............................................................................................................593.2.11 C-motech.............................................................................................................593.2.12 Axesstel ...............................................................................................................593.2.13 Others..................................................................................................................603.3 Embedded solution vendors .....................................................................................603.3.1 Ericsson...............................................................................................................603.3.2 Qualcomm...........................................................................................................623.3.3 Others..................................................................................................................624 Notebook PC integration ...................................................................................................634.1 The global notebook PC market ...............................................................................634.1.1 Market trends ......................................................................................................634.1.2 Notebook PC vendor market shares...................................................................654.2 Integration of mobile broadband in notebook PCs...................................................664.3 Notebook vendors .....................................................................................................694.3.1 Hewlett Packard ..................................................................................................694.3.2 Acer .....................................................................................................................704.3.3 Dell.......................................................................................................................714.3.4 Toshiba................................................................................................................724.3.5 Lenovo.................................................................................................................734.3.6 Fujitsu ..................................................................................................................734.3.7 Sony ....................................................................................................................744.3.8 ASUS...................................................................................................................744.3.9 Panasonic............................................................................................................754.3.10 Samsung Electronics ..........................................................................................754.3.11 Dialogue ..............................................................................................................764.3.12 LG........................................................................................................................765 Operator strategies for mobile broadband........................................................................775.1 Mobile broadband usage ..........................................................................................775.2 Business models .......................................................................................................795.2.1 Postpaid subscriptions........................................................................................795.2.2 Prepaid subscriptions .........................................................................................805.2.3 Bundling with other services ...............................................................................825.3 Pricing and conditions...............................................................................................835.3.1 Pricing .................................................................................................................845.3.2 International roaming ..........................................................................................845.3.3 Terms of use........................................................................................................875.4 3 Group......................................................................................................................885.5 Deutsche Telecom.....................................................................................................925.6 France Telecom.........................................................................................................955.7 KPN Group ................................................................................................................975.8 Telecom Italia.............................................................................................................995.9 Telekom Austria .......................................................................................................1015.10 TeliaSonera..............................................................................................................103Mobile Broadband in Europe and North America Page 3/7
  4. 4. Find Industry reports, Company profilesReportLinker and Market Statistics5.11 Telefónica Group .....................................................................................................1065.12 Vodafone Group ......................................................................................................1085.13 Verizon Wireless ......................................................................................................1135.14 AT&T........................................................................................................................1146 Market forecasts and trends ............................................................................................1176.1 Market summary......................................................................................................1176.2 Device market..........................................................................................................1186.2.1 Vendor market shares .......................................................................................1196.2.2 Form factor trends.............................................................................................1226.3 The European mobile broadband service market...................................................1246.3.1 Pricing trends ....................................................................................................1276.3.2 Network technology trends ...............................................................................1296.3.3 Service convergence trends .............................................................................1306.4 The North American mobile broadband service market .........................................1316.4.1 Pricing trends ....................................................................................................1316.4.2 Network technology trends ...............................................................................1327 Market profiles: Western Europe, North America and Australia......................................1357.1 Austria......................................................................................................................1367.2 Sweden....................................................................................................................1387.3 United Kingdom.......................................................................................................1437.4 USA..........................................................................................................................1467.5 International outlook: Australia ................................................................................147Glossary .................................................................................................................................151List of FiguresFigure 1.1: Most popular online activities across Western Europe 2434 year olds (2008) ......4Figure 1.2: Fixed broadband market data (EU23+2 2008)........................................................6Figure 1.3: Fixed broadband operators by number of subscribers (EU23+2 2008) .................7Figure 1.4: Mobile operators by number of subscribers (EU23+2 Q4-2008) ............................9Figure 1.5: Fixed broadband market data (North America 2008) ............................................10Figure 1.6: Fixed broadband operators by number of subscribers (North America 2008)......11Figure 1.7: Mobile operator by number of subscribers (North America Q4-2008) ..................13Figure 2.1: Wireless subscribers by standard (Worldwide Q3-2008).......................................15Figure 2.2: Technical performance data for 3GPP Release 5 (HSDPA)...................................18Figure 2.3: Technical performance data for 3GPP Release 6 (HSUPA)...................................20Figure 2.4: Evolution of different wireless technologies ...........................................................28Figure 2.5: Theoretical peak data rates by technology ............................................................29Figure 2.6: Correlation between bitrate and coverage .............................................................30Figure 2.7: Average range of latency for a ping roundtrip........................................................31Figure 2.8: UMTS network architecture ....................................................................................32Figure 2.9: LTE network architecture........................................................................................34Figure 2.10: UMTS data traffic in Swedish cellular networks (Sweden 20052008) ................36Figure 3.1: Examples of USB-modems ....................................................................................44Figure 3.2: Examples of embedded mobile broadband modules............................................45Figure 3.3: Examples of PC-card models.................................................................................47Figure 3.4: Example of a fixed wireless gateway......................................................................48Mobile Broadband in Europe and North America Page 4/7
  5. 5. Find Industry reports, Company profilesReportLinker and Market StatisticsFigure 3.5: Selection of mobile broadband terminal products from Huawei ...........................49Figure 3.6: Selection of mobile broadband terminal products from Option ............................52Figure 3.7: Selection of mobile broadband terminal products from Novatel Wireless.............54Figure 3.8: Selection of mobile broadband terminal products from Novatel Wireless.............56Figure 4.1: Notebook PC shipments (Western Europe 20042008) ........................................64Figure 4.2: Notebook PC vendor market shares (World 2008) ................................................65Figure 4.3: Number of notebook PC models with integrated HSPA (20072009) ...................66Figure 5.1: Distribution of data consumption among different users (2009)............................78Figure 5.2: Prepaid MBB offers from 3 Ireland (May 2009) ......................................................81Figure 5.3: New postpaid and prepaid mobile broadband contracts in the UK (2008) ...........82Figure 5.4: Examples of bundles in Europe by major operators (May 2009)...........................83Figure 5.5: Tariffs for Telekom Austrias roaming packages (May 2009) .................................85Figure 5.6: Roaming packages from Vodafone Netherlands (May 2009) ................................86Figure 5.7: 3 Austrias roaming tariffs (May 2009)....................................................................86Figure 5.8: 3 Group mobile broadband subscribers by market (2008)....................................88Figure 5.9: 3 Group mobile broadband tariffs by country (May 2009) .....................................90Figure 5.10: Acer Aspire notebook PC with 3s Huawei E180 USB-modem............................91Figure 5.11: T-Mobile broadband tariffs by country (May 2009) ..............................................93Figure 5.12: Orange mobile broadband tariffs by country (May 2009) ....................................96Figure 5.13: KPN mobile broadband tariffs by country (May 2009).........................................98Figure 5.14: Telecom Italia mobile broadband tariffs (May 2009)..........................................100Figure 5.15: Mobile broadband subscribers (A1 Mobilkom 20072008) ...............................101Figure 5.16: Telekom Austria mobile broadband tariffs (May 2009) ......................................102Figure 5.17: TeliaSonera mobile broadband tariffs by country (May 2009)...........................105Figure 5.18: Telefonica O2 mobile broadband tariffs by country (May 2009).........................108Figure 5.19: Vodafone mobile broadband subscribers (FY2005FY2009) ............................109Figure 5.20: Vodafone mobile broadband tariffs by country (May 2009)...............................111Figure 5.21: Verizon Wireless mobile broadband tariffs (May 2009)......................................114Figure 5.22: AT&T mobile broadband subscribers (US 20072008) .....................................115Figure 6.1: European mobile broadband market summary (20082014) ..............................117Figure 6.2: North American mobile broadband market summary (20082014).....................118Figure 6.3: Mobile broadband device shipments and revenues (EU/NA 20082014) ...........119Figure 6.4: Estimated revenues and shipments by device vendor by region (2008).............120Figure 6.5: Embedded module shipments by vendor............................................................121Figure 6.6: Shipments of notebooks with embedded mobile broadband (EU/NA 200814) 123Figure 6.7: Mobile broadband subscribers and operator revenues (Europe 20082014).....125Figure 6.8: Mobile broadband market data (EU23+2 2008)..................................................126Figure 6.9: Average monthly fee for mobile broadband services (Europe May 2009) ..........128Figure 6.10: Mobile broadband subscribers and operator revenues (NA 2008-2014) ..........132Figure 7.1: Fixed and mobile broadband subscribers by country (2008)..............................135Figure 7.2: Mobile broadband subscribers (Austria 20052008) ...........................................137Figure 7.3: Mobile broadband tariffs by operator (Austria May 2009)....................................138Figure 7.4: Mobile broadband subscribers in Sweden (20062008) .....................................140Figure 7.5: Mobile broadband tariffs by operator (Sweden May 2009)..................................141Figure 7.6: Mobile broadband operator market shares (Sweden H2-2008) ..........................142Figure 7.7: Mobile broadband tariffs by operator (UK May 2009)..........................................144Figure 7.8: Mobile broadband tariffs by operator (US May 2009)..........................................147Figure 7.9: Mobile broadband tariffs by operator (Australia May 2009).................................149Mobile Broadband in Europe and North America Page 5/7
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  7. 7. Find Industry reports, Company profilesReportLinker and Market Statistics Payment Information Please indicate the payment method, you would like to use by selecting the appropriate box. Payment by credit card Card Number: ______________________________________________ Expiry Date __________ / _________ CVV Number _____________________ Card Type (ex: Visa, Amex…) _________________________________ Payment by wire transfer Crédit Mutuel RIB : 10278 07314 00020257701 89 BIC : CMCIFR2A IBAN : FR76 1027 8073 1400 0202 5770 189 Payment by check UBIQUICK SAS 16 rue Grenette – 69002 LYON, FRANCE Customer signature:   Please note that by ordering from Reportlinker you are agreeing to our Terms and Conditions at http://www.reportlinker.com/index/terms Please fax this form to: Europe, Middle East and Africa : + 33 4 37 37 15 56 Asia, Oceania and America : + 1 (805) 617 17 93Mobile Broadband in Europe and North America Page 7/7

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