(Source: Business Week)
Some of the world's biggest mobile operators, PC manufacturers, and chipmakers will reveal on Sept. 30 that they are uniting to pre-install support for high-speed mobile data services into notebook PCs. Backers hope the move will result in wider consumer use of so-called "mobile broadband" that could rival or even surpass use of Wi-Fi hotspots.
If the plan works, it could boost third-generation [3G] mobile broadband in much the same way that Wi-Fi exploded after Intel (INTC) built support for it into the Centrino chipset. Consumers will have an easier time getting online while on the move: Instead of having to search for a Wi-Fi hotspot, owners of laptops equipped with the new technology will be able to connect wirelessly to the Internet wherever they are, as long as they're within coverage range and have a mobile subscription with data service.
The industry alliance is about much more than just bundling technology, though. As a result of the shift, some mobile operators will start selling laptops in their phone shops -- with big price incentives. That adds a significant new distribution channel, which could boost not just mobile broadband use but also sales of laptops, especially in emerging economies.
Subsidized Laptops Starting this Christmas, consumers in more developed parts of the world, such as Western Europe, will start seeing laptops for sale in mobile-phone stores. These customers, who are already used to paying as little as 1 [$1.45] for a subsidized handset, could start seeing similarly aggressive deals from mobile-phone operators for entry-level laptops, analysts say.
An even more radical business model will likely emerge in developing countries, where consumers tend to have less disposable income. Some operators will start offering both laptops and mobile data service on a subscription basis, allowing people to pay for the package over a period of months or years, says Mike O'Hara, chief marketing officer at the GSM Assn., a global trade group representing more than 750 mobile operators using the GSM wireless standard.
Laptop makers Dell (DELL), Lenovo, and Toshiba (6502.T) are among those supporting the initiative. Chipmaker Qualcomm (QCOM), software giant Microsoft (MSFT), and telecom gear marker Ericsson (ERIC) also are aboard, as are mobile-phone operators Vodafone (VOD), Orange (FTE), T-Mobile (DT), Telefnica (TEF), Hutchison 3G, TeliaSonera (TLSN.ST), and Telecom Italia (TI). "We think this is a huge play," says O'Hara.
To help drive sales, laptops with integrated 3G mobile broadband will carry a "service mark" -- a logo emblazoned with the words "Mobile Broadband" and two flying birds. The mark should help consumers easily identify PCs ready to connect to 3G out of the box.
