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Creating a new category

30 September 2008

Are HSPA "mobile broadband" services another Starbucks?

A £1billion campaign backed by 17 big names in IT and telecoms will promote mobile broadband just as rival service WiMax launches.

The GSM Association’s campaign, explains Rob Minto in today’s FT, will run on- and offline in 91 countries. The purpose of the campaign is to establish mobile broadband as a category consumers recognise. The category is supported by products from multiple vendors, including mobile broadband service contracts and laptops with embedded SIM cards. If the new category captures consumers' imaginations, the HSPA network (which powers mobile broadband) can consolidate its position just as the alternative WiMAX begins launching in the US this week. HSPA, while slower than WiMax, is available nearly everywhere, Minto says. 

So: mindshare x (ready product bundles + easy access + consistent availability) could equal market dominance for the HSPA tortoise.  On one hand, that’s smart marketing. On the other hand, if WiMax will deliver a better, faster experience then mobile broadband sounds a little disappointing. 

I fear we’ll end up with an experience like Starbucks: the ubiquitous chain is easy to access, predictable, consistently accepts payment by plastic ...but their coffee leaves a sour taste.

Click here to read the full FT article.