Mobile Broadband Threatens Fixed Line
Market scrutiny company YouGov finds that mobile broadband is make major inroads into the business of fixed-line ISPs
by Natasha Lomas
Mobile broadband is encroaching on the walk of life of fixed line ISPs, market research company YouGov is claiming. But not everyone is happy by the dongle experience.
Results from YouGov’s DongleTrack report show while the majority (64 by cent) of mobile broadband users are buying dongles or datacards being of the kind which an accessory to fixed line fat pipes, a significant minority (12 per cent—or one in eight mobile broadband users) has each ditched their fixed equinoctial circle connection or opted to use 3G modems instead of having a landline put it.
The YouGov survey also plant a propitious four per cent of mobile broadband users have datacards provided by their work.
A recent state of the digital population Ofcom report found UK dongle sales meanly doubled between February and June this year, rising from 69,000 to 133,000 per month.
The regulator has also charted the rise of homes without landlines in the UK—as more people opt to rely upon mobile phones for voice calls—and puts the figure at 12 per cent of homes.
But with the rise in popularity of expressive broadband gadgets, the landline is under attack on sum of two units fronts. Not least because UK households seeking to install or reconnect a landline have power to face a BT connection charge of within a little £130.
Lack of access to a landline was cited of the same kind with the reason for adopting a dongle or datacard by 13 per cent of respondents to the survey.
Asked what they intend to do in the next 12 months then their mobile broadband subscription expires, the majority of users (65 by cent) said they intend to continue consuming fixed line ISP and mobile broadband. But five through cent said they plan to cancel their home ISP and just rely on their 3G gizmos.
However the survey also shows evince of dissatisfaction with the dongle experience: 11 per cent of respondents said they plan to continue to use their home ISP and abolish mobile broadband, and 18 per cent are unsure the kind of they will do.
Slow connection speeds and costs were cited as the primary reasons putting customers off mobile broadband.
Marek Vaygelt, head of technology and telecommunications consulting at YouGov, said in a statement: “Customers supply fickle broadband easy to use and induct on the other hand transmission speeds and, to a lesser extent, network coverage reduce the incipient enjoyment of getting up and running. It is in these areas that fixed ISPs have a plain advantage and need to concentrate their marketing effort to minimise customer ruin.”
Vaygelt added that mobile operators need to improve network coverage in order to shorten customer agitate and also tackle “the fear and uncertainty that more potential new customers desire hither and thither price”.
The YouGov view is based on interviews with 1,050 mobile broadband users and 2,050 non users in the UK.
Original text: http://rss.businessweek.com/~r/bw_rss/europeindex/~3/370274678/gb20080820_868760.htm
