There is a feeling in the markets that the increasing popularity of mobile broadband is putting the more traditional ISPs at risk and may induce a price war which few of them can afford. There is also a fear that the reduced income which many experts are forecasting will see ISPs scale down their investment in super speed broadband services thereby holding back development of the UK broadband sector as a whole.
While initially the more traditional broadband services had not seen mobile broadband as much of a threat because it is not yet available throughout the UK, the number of consumers able to gain access to the service is growing. At the moment it seems to be cost which is the main attraction for many, with mobile broadband significantly cheaper and not requiring a landline and the charges associated with this.
However, there is a growing concern that some mobile broadband services are not quite living up to the hype with a recent survey suggesting that up to 25% of current mobile broadband users will not be renewing their broadband contracts when they expire. How the mobile broadband providers respond to this will be vital in the ever more brutal battle for customers. |
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