Newsletter 41

Nearly a quarter of people who access broadband internet services on the move (23 per cent) are now using a USB “dongle” or data card plugged into a mobile computer, reflecting massive growth in this method of going online. The figure is quickly closing on the one for people using mobile phones for broadband access (31 per cent).

However, mobile broadband growth is so fast that data traffic may quickly outstrip the capacity needed for mobile voice services.

These are among findings of two major new consultation documents on the telecoms market from Ofcom, the independent regulator and competition authority for the UK communications industries.

The reports say the UK has the most competitive mobile industry in Europe, with five operators and “a healthy number” of virtual network operators competing to offer services. The sector generates over £15 billion a year – 51 per cent of overall retail revenue for telecoms in the UK.

 

Voice calls continue to account for the greatest proportion of revenue from business users of mobile services, the report says, although revenue from data services (including SMS) is increasing at a faster rate.

It attributes that growth in part to increasing take-up of devices such as PDAs and BlackBerrys by business users, although it does point out that growth in 2007 was lower than the 44 per cent reported in 2006.

The documents are entitled Mobile citizens, mobile consumers, which covers the mobile phone and data market, and The Communications Market 2008, which extends the scope to TV, radio and broadband. Responses to both are invited by Ofcom, and there is an extensive online submission section on its web site connection with the Mobile Citizens report. Click here for Ofcom site.