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Wireless to Surpass Home Broadband Spending This Year
Which Of Course Should Surprise Nobody
by Karl Bode 12:19PM Wednesday Jun 05 2013
According to a new report by PricewaterhouseCoopers, consumer spending on wireless data services is expected to pass consumer spending on fixed-line broadband services sometime this year. Last year in the United States, home Internet spending reached $46.5 billion compared to $44.5 billion for mobile data, but mobile data is expected to reach $54 billion this year while home access reaches $49.6 billion.

Given the huge popularity of smartphones, and the rising costs of metered wireless data plans, and the fact that you can't get a smartphone without forced bundling of a data plan, none of this is particularly surprising. Companies like AT&T and Verizon have shifted their focus entirely from fixed-line services to wireless, where the ability to impose usage charges (not to mention the huge profit margins on SMS) make those services a huge cash cow.

"We see mobile growing at a much more pronounced rate than broadband, because we are getting toward the saturation point (on home broadband)," says PriceWaterhouseCoopers partner Sean De Winter. "Mobile Internet penetration is screaming through the roof."

With wireless's growth comes huge new ad opportunities; the firm expects mobile ads to grow 32% in the next four years, for $13.7 billion annually.

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buzz_4_20

join:2003-09-20
Limestone, ME

Bye Bye Innovation for Fixed Line Access

When there is a bigger cash cow is around it gets all the food.

Damn shame too, I was hoping we'd get some decent fixed line broadband in this country.

Guess only cell towers get to have quality wired internet service.

ArrayList
netbus developer
Premium
join:2005-03-19
Evanston, IL

Re: Bye Bye Innovation for Fixed Line Access

what more innovation do you need? we already have technologies that can serve the next 20 years.
buzz_4_20

join:2003-09-20
Limestone, ME
Reviews:
·ObiVoice
·Pioneer Wireless

1 edit

Re: Bye Bye Innovation for Fixed Line Access

Yes we do.
Sitting on the shelf not getting deployed.

With Investors wetting their pants on the Wireless Profits those of us who live outside our phones get left behind.

There is no reason that I should have faster internet on a wireless device than through a wired one, technologically.

MovieLover76

join:2009-09-11
kudos:1

1 recommendation

Re: Bye Bye Innovation for Fixed Line Access

Yep, I'm lucky enough to have FiOS but I'm one of the lucky few, most don't have access to fiber to the home, which should be the direction we're going for all home access.
openbox9
Premium
join:2004-01-26
Germany
kudos:2
said by buzz_4_20:

There is no reason that I should have faster internet on a wireless device than through a wired one, technologically.

Business-wise, yes, because it's lower cost to deploy, maintain, and operate. Add in the speed of deployment and wireless is the answer to a quick, easy, and cost-effective nationwide network.
XknightHawkX

join:2003-02-13
East Peoria, IL

Forced Wireless data!!

Let's not forget that most phone now a days are smart phones. Wireless companies tell you that you have to have a data plan for smart phones.

Verizon was even having a billing mistake that charge 1.99 to a bunch of customers for data that didn't even use data. Now I'm not saying for sure but I don't think it was an accident. They just figured people wouldn't notice.

Wireless will never replace my home broadband. More people have phones then computers, so more data plans are bought. They better never think their slow ass wireless speed will replace fixed line.
mgamer20o0

join:2003-12-01
Norwalk, CA

what do you expect

a house hold can share a connected line. where wireless each phone has to pay. even the shared data its what like $20 each a phone. when you have 2-5+ all on wireless data it adds up.

then also look at business. how many companies pay for the home connection but pays data for their business phone. though i am not sure if this takes into account business lines as well.

Boricua
Premium
join:2002-01-26
Sacramuerto

Re: what do you expect

I never thought of how you explained. Wireless companies get paid more for per seat than per house, it all makes sense now.
--
Illegal aliens have always been a problem in the United States. Ask any Indian. Robert Orben
elray

join:2000-12-16
Santa Monica, CA

What rising costs of metered wireless data plans?

Metered wireless data is generally getting cheaper, not more expensive.

WHT

join:2010-03-26
Rosston, TX
kudos:5

Re: What rising costs of metered wireless data plans?

said by elray:

Metered wireless data is generally getting cheaper, not more expensive.

Citations please.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: What rising costs of metered wireless data plans?

said by WHT:

said by elray:

Metered wireless data is generally getting cheaper, not more expensive.

Citations please.

Do you read this blog?