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Netbooks Will Drive Future Uptake of Mobile Broadband Services, Pyramid Research Finds

Posted on: Thursday, 21 May 2009, 14:45 CDT

CAMBRIDGE, Mass., May 21 /PRNewswire/ -- Increased sales of netbooks over the next three to five years will result in higher demand for mobile broadband services, driven by the emerging trend of bundling the low-end computers with mobile data services from specific network operators, according to the latest report by Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

Mobile Broadband for the Masses: The Case for Bundled Netbooks analyzes the business case behind bundling netbooks with broadband access for both operators and OEMs, discusses key performance indicators delivered by those operators that have embraced the use of netbooks, and assesses the value they have been able to extract from netbook sales. This 54-page report looks at the early examples of netbook bundles targeting students and examines the potential for netbook bundle sales in the markets of Brazil, Russia, India, and China. Download an excerpt of this report here: http://www.pyr.com/downloads.htm?id=1&sc=PR052109_RPNTBKS

Netbooks are just beginning to gain market traction; about 13 million were sold worldwide in 2008, with 10 million of those sales coming in the second half of the year, global economic crisis notwithstanding, notes Cristiano Laux, Manager of Consulting at Pyramid Research and coauthor of the report. "Bundles of these machines with Internet access are set to become a bread-and-butter offering for operators in developed and emerging markets alike, exceeding sales of notebook computers in the operator channel by 2010," says Laux.

While many operators are already supporting the business case for netbook bundles, OEMs are not happy about the downward pressure on laptop prices and the cannibalization that netbooks may have on the sales of high-end notebooks. "For now, they have agreed to live with the threat, fearing that without netbooks, the recession would hit computer sales even more than it has done already," Laux says.

Pyramid recommends that OEMs and broadband operators do what they can to support netbook sales. "There is growing evidence that netbooks are catching on with the under-21 crowd; if that trend develops, the adoption rate for netbooks could accelerate even more, which means these cheap and approachable devices could have a huge impact on how network operators make money off their services," explains Laux. Netbooks will also help accelerate mobile broadband adoption among low-income customers and in emerging markets. "In the lower-income countries of Asia/Pacific, the Middle East, Africa, Eastern Europe, and Latin America, most of the incremental impact from netbook sales will be seen only when the price of mobile PCs declines below $350, but this is expected to happen in late 2009, with mass-market shipments picking up during 2010," he says.

Mobile Broadband for the Masses: The Case for Bundled Netbooks is part of Pyramid's research report series. A blend of primary research and qualitative analysis, Pyramid's research reports offer comprehensive coverage of the fixed and mobile communications space and enable those in the communications industry to stay ahead of changing market dynamics.

Download an excerpt of this report here: http://www.pyr.com/downloads.htm?id=1&sc=PR052109_RPNTBKS

Mobile Broadband for the Masses: The Case for Bundled Netbooks is priced at $2490 and can be purchased online here: http://www.pyramidresearch.com/store/RPMOBILEBROADBAND0905.htm?sc=PR052109_RPNTBKS or through Dave Williams via email at dave.williams@pyr.com or telephone at +1 858-485-8870.

About Pyramid Research

Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries-a distinction that has remained unmatched for more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry's most comprehensive market data, trusted research and insightful technology analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused event company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (http://techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events, Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology magazines. TechWeb also provides end-to-end services including next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

*13.3 million business decision-makers: based on number of monthly connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities -- from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists -- with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.unitedbusinessmedia.com.

Press contact: Jennifer Baker +1 617 871-1910 jbaker@pyr.com

SOURCE Pyramid Research

Source: PR Newswire

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