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.