Has the mobile broadband bubble burst?

newsguy 0 Tallied Votes 546 Views Share

There is absolutely no doubt that mobile broadband has been one of those recession bucking sectors which has enjoyed something of a boom in recent years. However, according to new figures from Broadband Expert that boom would appear to be over.

Working on the basis that the number of people using the comparison website to sign up for mobile broadband services equates directly to the popularity of mobile broadband, at least in the UK, the site suggests that consumers are "realising the technology does not live up to the hype" and this accounts for the 57 percent drop it has seen in the last 12 months. Sales have crashed, I am informed, from around 3,000 in May 2009 to just 1,300 in May 2010.

These findings are not to be taken in isolation, of course, but are somewhat supported by Experian Hitwise data which also suggests a dip of more than 50 percent in the amount of searches undertaken for the phrase ‘mobile broadband’ during that same period.

Rob Webber, Broadband Expert’s commercial director, says that UK consumers have been let down by mobile broadband technology, with slow speeds and poor coverage being the main factors: "Mobile broadband experienced phenomenal growth in the UK as consumers expected all the benefits of a home broadband connection whilst on the move" he says, concluding that the impending availability of a super fast Long Term Evolution(LTE) 4G network will give mobile broadband the shot in the arm it needs to win back consumer confidence.

"We’re already seeing companies rolling out LTE networks in the US and Europe" Webber adds "but the UK is still 12-18 months away from this. LTE should boost mobile broadband speeds massively, with downloads speeds of over 100mbps achieved in testing; so it could outperform and even replace home broadband in the future. However, the UK needs to work faster to adopt the new technology required to reinstate consumer’ faith in the mobile broadband service and help sales recover to their former level".

Dani AI

Generated

A few corrective notes and a quick checklist to balance the thread. raises a legitimate question about whether mobile broadband has cooled; is right to call out the evidence used so far. Traffic to a comparison site or drops in search queries say more about shopping behavior and marketing noise than about actual network usage or long‑term demand.

Why those proxies mislead: people stop searching once they have service or when pricing becomes standard. Promotional pushes, device bundle deals, long contracts and market maturity all shrink comparison‑site activity without reducing total subscribers or data carried. Seasonal effects and channel shifts (more people buying in retail or via operator apps) also break the link between search volume and real adoption.

What to watch instead:

  • Operator subscriber counts and quarterly reports — show real additions or churn.
  • ARPU and total mobile data traffic — rising traffic with flat net adds points to heavier usage per user.
  • Device activations and retail dongle/MiFi sales — early adopter churn shows here.
  • Independent speed and coverage indexes (third‑party tests) — measure actual user experience.
  • Regulatory and industry reports — offer aggregated, audited numbers.

Practical checks for anyone trying to judge the market: run speed tests at different times and places, compare coverage maps from competing operators, read the latest operator financials or regulator reports, and watch retail device sales rather than search trends. Marketing campaigns and seasonal promotions can flip search numbers quickly; network investment, traffic growth and ARPU reveal whether the sector is shrinking or simply maturing.

Clanky 1 Newbie Poster

Surely the major part of the issue here is the source they are using.

The number of hits a comparison website gets is not an indicator of the number of people using mobile broadband, just an indicator of the number of people confused by it.

Mobile broadband is only really suitable for certain people (it is my only personal internet access) and many of those people are already signed up to it so do not need to compare services. Even those who are not already signed up to a mobile broadband service have far more readily available information than before (you can barely walk into a computer store without being bombarded with comparisons of the various obscene amounts you can pay per month for mobile broadband if you buy some ridiculously cheap low end netbook.

Using hits from a comparison website is like declaring that no-one is drinking coffee any more because less people are searching for coffee on Google.

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