Consumers want 3G modems -- at half-price

17.08.2009
Nearly half of U.S. consumers are interested in cellular modems, but only at half the price that service providers are charging for plans, according to survey results announced Monday by ABI Research.

One reason those consumers don't want to pay the going rate for broadband on the go is that they are already paying for high-speed Internet access at home, ABI said. And another report out Monday, from Leichtman Research Group, suggested the market for those fixed-line services is nearing saturation.

Cellular modems have been available for several years in the form of PC Card or USB add-ons for laptops and increasingly are available built into netbooks, e-book readers, navigation devices and other products. The cost of the modems themselves is often subsidized, but in most cases, service still costs about US$60 per month.

ABI surveyed 1,000 consumers and found that 47 percent don't have a cellular modem and are interested in using one, but only if the service cost $30 per month or less. Some said they would be willing to pay less than $10 per month.

Mobile operators traditionally have aimed cellular modems primarily at business users' laptops, but more recently they have moved toward a wider range of devices with broader appeal. AT&T and Verizon Wireless now both offer 3G-connected netbooks at subsidized prices with a two-year commitment. AT&T is the Acer Aspire netbook for $99 at the consumer-focused RadioShack electronics chain, and Verizon the HP Mini 1151NR at its own stores and online for $199.99.

The growing popularity of data services on smartphones, such as the iPhone and numerous BlackBerry models, suggests expanding the range of devices that can use fast mobile data networks is a good idea. But the data plans offered with smartphones typically are bundled with voice plans and cost less than the pure data services sold with cellular modems and pre-configured computers. For example, AT&T's monthly data plan for the iPhone costs $30 per month in addition to a required voice plan. An AT&T data plan for a cellular modem, with a 5GB monthly usage cap, costs $60 per month. A service with a 200MB cap sells for $40 per month.