Mobile broadband to get cheaper

The operators have now got an opportunity to get out of this rat race of constantly upgrading their networks. An article in Broadband Genie mentioned that because of recession operators may delay upgrading their network. The situation reminds me of the time when 3G rollouts were announced.

The operators who spent billions on 3G spectrum didn't seemed very keen on rolling out a network and except '3' which was a greenfield operator in many European markets, most operators took their time to roll out 3G. Those operators have now caught up with others in HSPA rollouts. The same situation is likely to occur in LTE rollouts.

The interesting thing that we have to remember though is that when 3G was being rolled out, there was only one main existing technology called GSM and people used to use dialup connections and we were not hooked on broadband. Now there are many competing technologies vying for the broadband users. We have WiMAX that will be the main competitor and iBurst and WiFi is very common as well. WiFi is free or is available at really low rates, the difficulty being to find one. Recently Inmarsat launched mobile broadband via satellite across the whole of Australia so this is another possibility for Mobile broadband.

If you look at all the options above it is difficult to see how the operators will be able to raise the prices. The only option for it is to go down. Its not difficult for them if they price it properly and optimise their networks. Going back to the Broadband Genie article there was an interesting observation:

Broadband Genie believes that, while pricing models are certainly going to change, it may not be a bad thing for everyone, as heavy users will be charged for the amount they download and less bandwidth intensive consumers may see prices fall.

So in the long term the prices of broadband will come down but at the same time there will be more applications requiring mobile internet use thus increasing our appetite to consume more and maybe the prices will increase for those heavy users. In the meantime enjoy your mobile broadband.