Frolic: It’s Happy Hour!

The mobile broadband industry was so far being considered as one of the safer bets in the ongoing global recession. In the recent GSMA Leadership Summit, it was said that mobile broadband is even capable of stimulating economic growth. However, the statement seems far from truth as the industry is worried about its own health and could see major investments being shelved in the near future.

Mobile broadband has so far been boosting growth and profits for the telecom companies, which are suffering losses in voice call volume and handset sales. However, with consumer spending plunging, the strain on sales is increasing and optimism is fading rapidly. Prior to the recession, many telecom providers had huge plans for 3G and 4G investments but now the companies seem intent on cutting down their capital expenditure to stem cash outflow.

At the Mobile World Congress held last week in Barcelona, it was suggested that investments for network upgrades will not be slowed down. However, recent reports from The Australian state that many operators like Orange and Vodafone are reconsidering their 3G and 4G initiatives and may put them on hold until the economic conditions become more favourable.

It seems consumers will have to wait much longer before they can enjoy faster and more advanced mobile broadband services, but given the severity of the current situation, even the early adopters might treat this news with indifference.