Though it is not certain when the mobile broadband sector will witness a price rise, according to most analysts, the latest being Strand Consult, the day is not far. Strand recently released a report, which talks about the current lack of profitability that providers are facing.

The report titled, ‘Successful Strategies in the mobile broadband market’ has again raised concerns over the current mobile broadband price model. According to the report, in order to stay in the race many mobile broadband providers are offering services and laptop deals at half the cost it takes them to operate – click here for those free laptop deals.

The competition in the industry is taking its toll on almost all the providers. Strand points out that though a price rise is possible in the near future, providers should not jump the gun, since this is an inappropriate moment and such an action could have a significant adverse impact on the growth in the industry. It would be wiser to wait for a while and simultaneously look for other revenue sources or introduce cost-cutting measures to reduce losses.

It is very much possible that providers would take steps such as introducing premium services, which will be able to fetch them a higher margin, or restraining the amount of mobile data services, such as peer-to-peer and VoIP, allowed to users.

Though predictions about the price rise have been around for quite some time now, providers are yet to hint at any action in this direction.

This entry was posted on Tuesday, May 26th, 2009 at 6:17 am and is filed under Consumer World, Technology Stuff, Telecommunication. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.