vacancies advertise contact news tip The Vault
facebook rss twitter

Telco channel to account for the majority of Internet devices by 2013

by Scott Bicheno on 18 November 2009, 13:35

Tags: IDC, Gartner (NYSE:IT), In-Stat

Quick Link: HEXUS.net/qauxy

Add to My Vault: x

Telco tendencies

Market researcher In-Stat has predicted that over 60 percent of Internet-connected mobile devices - which includes laptops and netbooks - will be sold through the mobile phone operator channel by 2013.

With mobile PCs increasingly coming with 3G connectivity built in, it makes sense for them to be sold as part of a mobile broadband bundle. Additionally, with the majority - if not all - of the cost of the hardware built into the contract, end-users typically spend a lot more via this method than if they were just buying a stand-alone device.

"In the US, carriers are charging up to $60 per month for a two year contract with the subsidized purchase of a netbook," said Jim McGregor, In-Stat analyst. "While the subsidy costs the carrier $50-$100, it generates $1,440 or more in service fees over the life of the contract." This trend is also establishing itself globally.

Here are some further bullet-points from the research:

  • The total available market (TAM) for Internet-connected devices is projected to grow at a 22.3% compound annual growth rate (CAGR) through 2013.
  • 78% of Internet-connected devices will be using processors with integrated multimedia acceleration, including 85% of mobile PCs, by 2013.
  • In-Stat projects that nearly 31% of notebooks will be sold through carriers in 2013.
  • The innovation of the mobile market is being driven by four key factors: richer content, network access for communications and content, increased bandwidth to enable this access, and new technologies.