November 09, 2010 00:15 ET

Standalone Mobile Hotspot Device Revenue Already Approaching $500 Million in 2010, Says In-Stat

SCOTTSDALE, AZ--(Marketwire - November 9, 2010) - The concept of a mobile hotspot, a device that connects to a mobile broadband connection and provides a bridge to a Wi-Fi LAN, is relatively new, with the first standalone mobile hotspot devices only appearing in the last two years. Yet, the number and types of mobile hotspots is growing almost daily and In-Stat ( forecasts that revenue from standalone mobile hotspot devices will approach $500 million by the end of 2010. Mobile hotspot service revenue is projected to reach into the tens of billions of dollars annually.

"Mobile hotspot device shipments are expected to grow for several years, but we expect some jockeying for the top position occurring between device categories," says Allen Nogee, Principal Analyst. "Smartphones with embedded mobile hotspots have already cut into shipments for battery-powered mobile hotspot devices. Automotive hotspot devices might do the same. Standalone mobile hotspots will take on a new life again as they are positioned as home gateway devices for mobile operators selling broadband services to the home."

New research by In-Stat reveals the following:

  • Smartphone mobile hotspot functionality allows a mobile operator to typically charge an additional $20/month.
  • While many automobiles will have mobile hotspot capabilities, only a small percentage of these car owners will activate their hotspot and pay for monthly services. 
  • A large market opportunity exists for mobile operators to provide WiMAX or LTE broadband services to home users and compete with DSL and cable providers.

Recent In-Stat research, Mobile Hotspots: Heating Up and Driving Mobile Data Growth (#IN1004787WBB) covers the three main types of mobile hotspot devices, standalone mobile hotspot devices, automotive mobile hotspots, and mobile smartphone hotspots. The report includes:

  • 5 year device shipment and service revenue forecasts, for hotspot-enabled handsets, automotive, and standalone mobile hotspot devices.
  • Pricing strategies
  • Discussion of obstacles
  • Company profiles; Cisco/Linksys, CradlePoint, Huawei, Netgear, Novatel, Option Wireless, and Sierra Wireless

About In-Stat

In-Stat's market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, and direct relationships with leading players in each of our core markets.

Contact Information

  • Contact:
    Allen Nogee
    Principal Analyst
    E-mail: Email Contact
    Phone: (480) 609-4538

    Rick Vogelei
    Marketing Manager
    E-mail: Email Contact
    Phone: (480)483-4476