Mobile broadband provides profit boost for mobile giants

The latest reports out are showing that mobile phone companies are benefiting from the huge popularity of mobile broadband access throughout the country with significant increases in their profits, and the rollout of increasingly high-speed mobile broadband could push the growth of the European economy forward.

A significant boost in profits for many of the mobile phone companies throughout the UK have, according to recent reports, been attributed to the increase in popularity of mobile broadband services.

Both T-mobile and O2 have reported strong sales figures, which have been helped along largely by mobile broadband and a number of 3G services being launched, when posting their full year trading results.

Over the last year the average mobile broadband revenue per user rose by nine percent, which compares to a drop in the equivalent voice service revenues of two percent, according to reports from O2.

At the same time reports from T-Mobile have shown an increase of 250 percent in reported total mobile broadband connection, and this includes a contribution of 20 percent of all new contract sales from its Android-based G1 mobile phones.

The chief executive of T-Mobile, Jim Hyde said that it would concentrate on its core contract customers who, combined with a number of other things, had helped to keep any losses the company had incurred at a much lower level.

He explained “T-Mobile UK has maintained its strategy of customer acquisition, focusing on its core contract customer base and other targeted segments including mobile broadband. The successful launch of the Android-based G1 in October and the ongoing demand for mobile broadband services had a positive impact on the latter half of 2008.”

The potential of high speed mobile broadband network roll-outs to drive the growth of the economy throughout Europe was highlighted to delegates at the recent GSM Association’s Leadership Summit.