The rapid growth of 3G data cards has become a unique service for operators
Dan Shey, an analyst at ABI Research, said recently that the demand for 3G modems in notebook computers began to grow rapidly due to frequent business trips and the annoyance of finding Wi-Fi hotspots.
According to ABI Research's report, the unit sales of this modem increased by 300% from 2006 to 2007, and by 2013, annual revenue will increase from US $ 3 billion in 2007 to more than US $ 22 billion.
Shey said in an interview: "The growth is very significant." He explained that the decline in terminal and service prices is a factor. He believes that the most popular 3G and 3.5G laptop modems are USB data cards. PCI modems and data cards inserted into PC card slots are also available for sale.
There is still huge potential demand for such modems. Shey believes that the main reason is that they can be easily used in a wide coverage area. Mobile networks with higher data rates are becoming widespread, and in many cases can provide rates up to several megabps. However, because the cost of data is still relatively high, the main users of such modems are still business users. Shey believes that the main reason is the higher charges. For example, in the United States, Sprint Nextel, Verizon Wireless, and AT & T Mobility's monthly fee plan, 5G traffic charges up to $ 59.99.
However, the price of laptop modems has begun to fall, and Verizon provides users with a 2-year contract USB data card for $ 29.99 per month. Major PC manufacturers also sell laptops with built-in 3G modems. Some telecommunications companies, such as Vodafone in Europe, are also planning to resell laptops equipped with 3G.
Shey predicts that higher-speed 3G network deployment and the increasing availability of modems will eventually eat into the Wi-Fi market. Mobile network integration provider iPass has begun to provide access to Sprint's 3G data network while also allowing access to many Wi-Fi hotspots.
Some operators are exploring "bundling" 3G phones to laptops via USB or Bluetooth. For example, Sprint recently reduced the cost of bundled services. But Shey believes that this method cannot go further. He said that this kind of bundling consumes the battery power of the mobile phone, which may cause users to reduce the use of phone-based services, thereby reducing the enthusiasm of operators to promote this method.
One disadvantage of PC-based modems is that laptops may be tied to an operator for life. However, Shey believes this concern is waning. The multi-mode wireless device, Qualcomm ’s Gobi chipset that began to appear in HP and other brands of notebook computers, allows users to easily switch from one network to another. In addition to investment protection, this flexibility allows users to connect in other countries through different networks. For example, CDMA users in the United States can easily connect to European or Asian GSM markets.
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