Greger Blennerud, director, Sales Development for HSPA, benchmarks operators that have launched HSPA. He says the keys to success are simple:
-
Launch quickly and be first in your market.
-
Offer high speeds, matching those typical of DSL connections, to provide the experience that end users are looking for.
-
Offer flat-rate pricing that can compete with broadband carriers.
Speed is at the heart of HSPA, or turbo 3G, because consumers are demanding the same functionality that they use today over fixed networks. "Consumers want the same experience they get from their fixed-internet connection, so giving them anything less than 1-2Mbps is probably not going to attract the PC users, and that's the target group we're talking about here," Blennerud says.
Reports from Sweden and Austria show that more than 50 percent of all new broadband subscribers are choosing mobile broadband. Swedish operators are reporting 30,000 new mobile broadband subscriptions a month. Many of these subscribers are generally referred to as late followers. Operators are reporting that the number of people aged 55 and above are showing up in much larger numbers than expected.
"Consumers find it is easy to get started with mobile broadband," Blennerud says. "There's no configuration to worry about because USB modems are truly plug and play. We now see some operators selling more USB modems than mobile phones."
Pricing and packaging is where many operators miss out, Blennerud says. "Consumers must feel like they have price control," he says. "Everyone can tell a story about someone who has received a crazy bill and the media has been quick to jump on these human-interest stories. When operators launch HSPA, they can compete with traditional broadband suppliers, where pricing is extremely competitive and prices are pressed."
Blennerud says the business opportunity is already here. "Mobile broadband takes off the minute you launch it and operators that are putting their muscle behind HSPA are finding that it pays off."
HSPA in brief:
More than 130 commercial launches in 60 countries.
600 million mobile broadband subscriptions expected by 2010.
More than 310 HSPA-enabled devices commercially available.
Ericsson has supplied 69 HSPA networks in commercial operation.