Monday 9 January 2012

4G, the UK and M-Commerce


With the threat of 4G networks coming to the UK in the future, the not so distant future, m-commerce is set to boom globally.

Obviously this depends on the speed to which the UK adopts the 4G network (or in some cases via the preferred Long Term Evolution (LTE) standard) and also the speed at which companies develop 4G style devices and content, the latter two have slowed down the adoption of 4G in Sweden which launched the service back in 2009.

As far as devices are concerned with an increase in content available (see below) more companies are looking to develop 4G devices, with a subscription rate in Stockholm going from 9,000 to 30,000 subscribers after the news that new devices on a 4G network are to become available. 

Content is becoming more readily available with Channel 4 becoming the latest media company to offer its on demand services across the 3G network and with streaming companies (eg Netflix 86.56$ up 20.8% in 2012) offering an increasingly mobile content we can expect at least a demand for faster network speeds.

…..and for the UK?

Well many countries around the world have already said they will start to adopt 4G but the UK will not be a technology trendsetter for mobile networks. With an auction for the licences before the end of the year we might see the service for the first time in 2014. This compares to the US where Verizon (c. 60% of customers covered by end of the year) and MetroPCS already launching there services by Oct 2011, making the UK 24 months behind.

“The US accounts for about 47% of all global 4G LTE traffic.”

This slow adoption means the UK is losing out on m-commerce, to the tune of £732million per annum according to think tank Open Digital Policy Organisation.
With positives of the new 4G network being: increased workforce productivity through: cloud and enhanced mobile networks and increased working hours about 37million hours extra.  With research from eBay suggests that mobile shopping in the UK could get a £4.5bn boost by 2016 and as much as £19bn by 2021, with a 4-fold increase to £6bn over the next 5 yrs.

So for the UK at least it’s a hold tight and wait for 4G while trying to take advantage of any 3G m-commerce you can offer in the meantime.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Legal Disclaimer

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice or recommendation by us and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Appropriate independent advice should be obtained before making any such decision. Any arrangement made between you and any third party named in the site is at your sole risk and responsibility.