Page Impressions Ltd Blogcetera: The Mobile Dongle is becoming mainstream

Monday, October 06, 2008

The Mobile Dongle is becoming mainstream

The fastest growing segment broadband internet access in the UK is the mobile dongle.  Almost overnight - well the last 12 months - the dongle has become the preferred method of access for new internet users. 

The term dongle has traditionally referred to any USB device; however, with the rise of mobile broadband it has become synonymous with mobile broadband modems.

Mobile broadband dongles are portable modems that plug into the USB port of your laptop or computer providing internet access via 3G signalling. Dongles are popular with business and personal users alike as they offer greater flexibility and increase communication opportunities.

All dongles come with “plug and play” technology so there’s no need to install any software; you just insert your mobile broadband sim card and plug in your dongle. The software will automatically be loaded onto your laptop and you’ll be able to connect to the internet within minutes.  The recent introduction of Pre Pay PAYG (Pay as you go) dongles from the leading mobile players has resulted in accelerating their adoption with price having traditionally been the main barrier to the roll-out of the mobile internet amongst personal users.  Pre-pay dongle sales have jumped from 10% to 25% of the market in just two months.

The market leader in the UK with 40% of the market is Mobile player 3 who were the first to enter the market and introduce the PAYG option.  T-Mobile have established themselves as an innovator in the traditional mobile phone tariffs and have been quick to grow their position in the UK to take 24% of the market.  Vodafone having largely missed out on the Internet market in the UK, have been quick to adopt the dongle as their preferred approach and have been the fastest growing player in the UK achieving 21% of the market today.

O2 has only a very small share of the market with 4% market share, but has largely focused its attention to growing its fast 24M Broadband fixed line service based on their acquisition of Be last year.

3G broadband modem has increased in popularity by an 18 per cent growth rate every month since February 2008. If this trend continues then around 300,000 mobile broadband devices would have been sold by December this year.  This suggests a mobile dongle market somewhere in the region of 500,000 users across the five operators offering the dongle service.

Whilst the mobile dongle has a long way to go to challenge the traditional fixed line broadband access with an installed base of in excess of 16 million lines in the UK, the pre-paid PAYG dongle could well become the de facto gadget for students and users on the move.

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