PC Retail

This booming product category is available in two main formats, the PCMCIA 3G card and the modem that connects to a laptop through a USB port, also better known as the mobile dongle.

The shape of the market took a significant turn in January 2008. Sales started to rocket, combined with a shift of the product's form factor. While sales of PCMCIA 3G card modems lead the market for most of 2007 and still accounted for nearly half of the Christmas sales, USB mobile modems have been heavily dominating sales, with a share over 95 per cent YTD 2008, since the beginning of the year.

In spite of the strong year-on-year value growth (766 per cent) for the total mobile modem sales this May, average prices dropped considerably over the last 12 months, by half in May 2008, to just £20.

This price decline has mainly been driven by the fact that the majority of mobile dongles are purchased with a mobile data contract, in which case the modem is often given for free to the end-consumer.

However, when a mobile modem with USB is purchased as part of a prepaid scheme, the end consumer has to pay a one-off fee for the device.

Speaking about the results senior account manager at GfK, Chantal Brel (right) said: "Two important barriers that have been holding back the mobile broadband market from growth are now removed: complexity and cost.

"Operators' mobile broadband offers have become a lot more comprehensive and affordable for the general public. And while sales of laptops with integrated 3G are still insignificant with less than one per cent share in May, there is still enormous growth potential for the mobile modem market for the future."

The increasing demand and usage of digital content by consumers along with the time and money spent on this sector is an important driver of the mobile broadband market. The dongles are acting as a 'personal key' to the digital world.

"To be able to access the internet wherever you are and whenever you want is becoming more and more important in this technological age. Sleek design and funky colours are also key, as the mobile modem must reflect the consumers' digital lifestyles and values. Extremely portable, personal and plug-and-play, the market is ready to be dongled.
*Source: Ofcom 'The communications market 08'