Global Premises

Sweden is one of the leading countries when it comes to using mobile broadband, with recent years witnessing a great increase in its usage. In 2008, data consumption by users of mobile broadband has doubled. This has brought mobile broadband at the same level as fixed line broadband in the country. Emphasising the growth, the Swedish Post and Telecom Agency has recently published a report, which says that the transfer of data on mobile broadband in Sweden has multiplied four times recently.

Commenting on it, a senior partner of Rewheel, a telecom consultancy based in Helsinki, said that current statistics reveal a levelling in the capacity of mobile broadband and fixed line broadband usage. Many others have also argued that mobile internet can replace fixed line broadband in Sweden in the coming years.

A reason for such pervasiveness of mobile broadband is the low price of the service in the country. The level of competition among service providers is very high, leading to very affordable prices. However, this may have a negative effect as well. In order to compete further, the companies may try to further reduce prices, which may have an adverse effect on their profits. Thus while consumers may be ready for replacement of fixed broadband with mobile broadband, the industry may not be so prepared, as it needs a price structure in place which will ensure that the service providers do not incur losses.