3G Modem Market Shipments Scream, but Price Erosion Constrains Revenue Growth, According to In-Stat

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--The market for cellular 3G modems is in flux as the technology advances rapidly, reports In-Stat (http://www.in-stat.com). In addition, a growing range of devices have the opportunity to leverage wireless broadband. However, price erosion is constraining revenue growth as unit shipments continue to soar.

“The Cellular Broadband 3G Modem Market: Multi-mode and Hotspots add Spice to Life”

“The Average Selling Price (ASP) of external or USB modems dropped more than 25% in 2009 to below $65 per unit in 2009,” says Allen Nogee, In-Stat analyst. “However price erosion will moderate in coming years, as multi-mode modems that also support WiMax, WiFi or LTE gain ground.”

Recent research by In-Stat found the following:

• In 2010, the market for 3G cellular modems (aside from mobile handset modems) will be worth over $3.5 billion.
• The external 3G cellular modem segment is larger than the embedded modem segment in 2010, but embedded modems are on a path to surpass external 3G modems.
• The top reason cited by respondents to an In-Stat survey that made them averse to using cellular broadband services was slow performance.

The research, “The Cellular Broadband 3G Modem Market: Multi-mode and Hotspots add Spice to Life” (#IN1004602SI), covers the worldwide market for cellular broadband 3G modems. The report reviews the 3G cellular modem market, but does not include modems used in mobile handsets. It includes:

• Examination of an In-Stat survey of cellular modem users covering access and service.
• Forecasts of worldwide 3G cellular modem shipments, average selling prices, and revenue by type through 2014.
• Analysis of market drivers and barriers.
• Vendor profiles.

For a free sample of the report and more information, please contact Elaine Potter at: [e-mail] or [phone]

To purchase it online, please visit: http://www.instat.com/catalog/wcatalogue.asp?id=68

The price is $3,495 (US).

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions.