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June 15, 2010

US mobile broadband to grow at 36.1% CAGR: IDC

Demand for 4G to play positive role in spurring growth

By CBR Staff Writer

The US mobile broadband market will grow from 6.5 million subscribers in 2009 to 30.2 million in 2014, accounting for a compound annual growth rate (CAGR) of 36.1% over the forecast period, according to a report from market research and analysis firm IDC.

The market analyst said that the introduction of subsidised netbooks and tablets, changes to pricing structures, and the early availability of 4G with WiMAX (and upcoming LTE deployments) have begun to spur interest among the consumer segment about the power of mobile broadband as a secondary access method beyond wired broadband.

IDC said that evolving landscape of wirelessly connected devices such as Apple’s iPad will have a positive impact on this market. It expects mobile broadband to become a primary access technology in the longer term and said broad availability and consumption of devices such as tablets will drive growth around mobile broadband.

The research firm said that growing market of 4G – both WiMAX and LTE fully deployed – will play a positive role in spurring growth within the consumer and the business segment.

Carrie MacGillivray, program manager of mobility services at IDC, said: "Mobile broadband is growing in importance for both consumers adopting the service and the operators offering connectivity.

"Diversity in pricing plans, new computing devices capable of mobile broadband connections, and the promise of a 4G world with faster speeds are a tempting proposition for customers looking to be ubiquitously connected regardless of location, anytime."

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