Last week, 16 of the world’s best known IT and mobile companies made headlines when they announced that they will be joining forces to spearhead a GSMA-led initiative, creating a new category of always-connected Mobile Broadband devices that will deliver a compelling alternative to WiFi.
Backed by operators, device suppliers, software firms and chipset vendors, the initiative aims to drive awareness of mobile broadband connectivity embedded within computing devices such as notebooks.
In the first phase of this unprecedented initiative, a graphic service mark bearing the words "Mobile Broadband" will be attached to notebooks and designed to help customers know which laptops are mobile-broadband enabled. This will reportedly be available in some 91 countries.
Launch participants include 3 Group, Asus, Dell, ECS, Ericsson, Gemalto, Lenovo, Microsoft, Orange, Qualcomm, Telefónica Europe, Telecom Italia, TeliaSonera, T-Mobile, Toshiba and Vodafone
“Mobile Broadband is like a home or office broadband connection with one crucial difference: freedom. Freedom from hot spots, freedom from complexity and freedom from security concerns,” said Michael O’Hara, CMO of the GSMA.
“…16 of the world’s largest technology companies have committed to change the way people get online forever. This commitment is manifested in a service mark that we expect to see on several hundred thousand notebooks in the shops by the holiday season. The Mobile Broadband badge will assure consumers that the devices they buy will always connect – wherever Mobile Broadband is available – and that they can expect a high standard of simplicity and mobility.”
The GSMA expects a global media spend of USD 1 billion around this service mark within the next year to create awareness of mobile broadband access.
ABI Research principal analyst Dan Shey comments, "HSPA broadband networks are firmly anchored in major metropolitan areas of Europe, North America and other parts of the developing world and are the foundation for pushing sales of devices with embedded cellular modems. But awareness of embedded mobile broadband has not been high, as operators are the main proponents of mobile broadband, primarily through sales of PC Cards and USB modems. This initiative is designed to raise awareness of devices with embedded cellular connectivity such as laptops, UMPCs, MIDs and eventually consumer electronics."
But is this initiative good for everyone?
Says Shey,"This initiative poses the greatest challenges for operators. On one hand, more devices that are cellular enabled will create more opportunity to sell mobile broadband services. However, except for standard practices of bundling, offer design, and subsidization, it is unclear how operators will differentiate their mobile broadband services as more devices have embedded cellular connectivity. Subsidization is already one area operators would like to avoid but they also want to avoid competing based on price. Operators will need to think carefully about how mobile broadband will affect their businesses as mobile broadband devices become more widely available and achieve higher levels of consumer awareness."
Today some 55 million people subscribe to Mobile Broadband services in 91 countries – a number expected to grow by four million per month by the end of 2008, according to Wireless Intelligence. |
