The mobile broadband market will continue its rapid growth during the next five years and generate valuable new revenue streams for mobile network operators, according to a report by Analysys Mason. The report states there will be 148 million mobile broadband connections in Europe by 2014, accounting for almost half of all broadband connections in the region. The usage profile of subscribers is set to change, as more casual users adopt mobile broadband as a complement to DSL- or cable-based services, usually opting for prepaid subscriptions rather than the commitment of a monthly contract. Prepaid subscriptions will account for 59 percent of mobile broadband connections in 2014, up from 8 percent in 2008.

Mobile broadband services will generate service revenues of EUR 23 billion in Europe in 2014, compared with EUR 6 billion in 2008, which represents a CAGR of 46 percent. While prepaid users will account for the majority of growth in the number of connections, contract subscribers will continue to contribute most of the service revenue, at 77 percent in 2014. Analysys Mason estimates that mobile broadband will account for 5.7 percent of all telecommunications service revenue in Europe by the end of the forecast period, up from 1.7 percent in 2008.

The key development in the mobile broadband market during the next five years will be the growing proportion of casual users, said the researchers.