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Mobile Broadband Gains Ground with Enterprise Users, but Price Still a Barrier

7:30 am on July 6, 2006 | Category: Business, Cellular, Telecom Services, Wireless

Cellular broadband services based on EV-DO, HSDPA, and other 3G technologies, are quickly catching on with enterprise-level customers throughout the United States and Canada.

3G wireless offerings let users access the internet at DSL speeds from most major cities in North America. To make use of the service on a laptop or cell phone, one must sign up for a mobile data plan, which are now offered by most wireless carriers.

Although 3G broadband has progressed rapidly in the past couple of years, with its popularity continually improving, it still accounts for only a small portion of the overall wireless market. The reason for this has to do with the high cost of coverage, which generally comes to a flat fee of $60 to $70/month.

“I think people get nervous getting sucked into $60 each month. That’s what’s turning them off,” says Gartner research analyst, Kevin Dulaney. “You’re committed to that money every month whether you use it or not.”

To further improve the enterprise penetration of 3G, as well as make it more accessible to the consumer market, carriers will need to gradually lower prices as technology improves. One way to aggressively increase market share might be to offer trial subscriptions, letting customers test cellular broadband for a month, at a reduced rate, without requiring them to sign a service contract.

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