Mobile hotspot router market to hit $1 billion in 2011

The mobile hotspot router shipments in 2011 are expected
to reach 7.1 million units with an estimated end-user revenue value of $1

The mobile hotspot router is the only standalone device
capable of being distributed to the end customer that reduces the number of
subscribers while growing ARPU. The mobile routers also have the advantage of
not consuming mobile data at the same rate as directly-connected devices.

In 2016, rapid adoption of mobile hotspot routers will be
rewarded with more than 60 million annual shipments and an approximate end-user
revenue value exceeding $5 billion.

The surge in sale is because a fundamental shift in
mobile data communications is happening. Mobile network operators have made
headlines due to poor performance and declining user experience as millions of
new devices look to connect to the Internet anytime and anywhere. The solution
will be in the form of a smartphone-sized device that connects several
Wi-Fi-enabled devices to a single mobile broadband subscription.

Network operators are increasingly looking for data
signaling optimization and device aggregation techniques in the Radio Area
Network (RAN), where mobile hotspot routers help alleviate these challenges.

The first products to reach the market in 2009 generally
overshot the mass consumer population. Products were very complex to set up and
catered to an IT-managed remote workgroup environment, such as a construction
site or field emergency response team,” said Jeff Orr, group director, mobile
devices, ABI Research.

Advancements have been made by vendors to reduce the size
and complexity of mobile hotspot routers. The solutions also address imminent
carrier challenges as they expand operations to support the deluge of mobile
data demands.

Network carriers want to grow the subscriber base but
risk alienating users who feel that the services continue to get slower as more
devices are online.

By Team
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