Embedded netbooks could blur broadband service boundaries

NEW YORK, USA: The growing popularity of netbooks and laptops with embedded broadband wireless modems could lead network operators to offer single-price broadband services that include both mobile and fixed connectivity, marking a significant shift in the way broadband services are used and sold, according to the latest report from Light Reading Insider.

The Netbook Effect: Remaking Broadband Price Structures identifies and analyzes key issues that will affect the embedded laptop and netbook market through 2010. It forecasts the adoption of these products and discusses barriers to and drivers of that adoption. This report also examines the competitive environment, such as pricing pressure on modem vendors and how embedded PCs will affect the wired broadband market.

"Until the past year or so, embedded laptops were aimed primarily at enterprises and business users, but with the arrival of embedded netbooks, the addressable market now includes consumers," says Tim Kridel, research analyst for Light Reading Insider.

"While the full impact of embedded PCs on broadband services is not likely to be felt over the next 12 to 18 months, network operators will have to respond with different service options as more of these devices are put into use," he added.

As embedded netbooks grow in popularity and accessibility, consumers will look for more choices from their broadband service providers, Kridel notes. "Operators that figure out how to offer service that cuts across fixed and mobile lines stand the best chance of succeeding with this emerging user group," he says. "The amazing growth of mobile data services driven by devices such as the BlackBerry and the iPhone, coupled with the arrival of higher-speed mobile data services, will likely spur a huge opportunity for operators that can adapt their services to fit user demands."

Key findings of The Netbook Effect: Remaking Broadband Price Structures include:
* About 3 million embedded laptops and netbooks were sold in 2008, with at least 4.5 million possible this year.
* Some laptop and netbook vendors say that up to 40 percent of their 2008 sales were embedded.
* Despite the growth of embedding, USB/PC card adapters are selling briskly and remain in the majority.
* Bundling wired/wireless broadband removes a major barrier to consumer adoption of embedded products.
* Competition and pricing pressure are fierce among makers of embedded modems.Embedded netbooks could blur broadband service boundaries.