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December 5, 2012

HSPA/LTE subscribers to reach 70 million in Europe by 2017: report

HSPA/LTE accounted for about 21.8% of the total number of broadband connections in Europe by the end of 2011

By CBR Staff Writer

Subscribers for high speed packet access (HSPA)/ long term evolution (LTE) mobile broadband are expected to rise at a compound annual growth rate (CAGR) of 10.7% in Europe to 70 million by 2017, according to a new report.

Berg Insight’s new report revealed that HSPA/LTE accounted for about 21.8% of the total number of broadband connections in Europe by the end of 2011.

According to the report, the North American market reported 47% rise in HSPA/LTE subscribers in 2011 to 21.4 subscribers, while, currently, mobile broadband accounts for 18.1% of overall broadband connections in the region.

By 2017, the North American market for HSPA/LTE subscribers is projected to rise at a CAGR of 16.3% to 53 million subscribers.

Within the European continent, Austria and Sweden have the highest adoption levels of mobile broadband with penetration rates of about 20%, while Denmark, Norway, Ireland and Finland have penetration rates of more than 13%.

Belgium, Greece and Slovenia on the other hand have a penetration rate of even less than 4%.

According to the report, Baltic countries, Poland and Austria offer lowest subscription prices that renge between € 8 and 10 for a 3 GB bundle that offers a data rate of 7.2 Mbps, while Switzerland has highest subscription price of about €39 per month.

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Berg Insight telecom analyst Lars Kurkinen said: "We have previously seen an average year-on-year price decline of 20 percent in Europe, compared to a decline of only 7 percent this year."

In 2011, the number of external mobile broadband terminal shipments worldwide reached 102.5 million, while terminal shipments to Europe and North America declined to 26.6 million units and 8.1 million units respectively during the period.

As per the data on terminal shipments for the initial three quarters of 2012, the global market is expected to decline by 24%.

The report also revealed that the USB form factor is forecast to drop by 30% in 2012 to 66 million units, while global shipments of mobile hotspots are projected to rise by 15% to 12 million units during the year.

China based Huawei has captured about 54% of mobile broadband terminals holding market share, followed by ZTE with 34% market share.

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