Broadband – is it over when mobiles get 5G?
The SIM only MVNO (Mobile Virtual Network Operator) GiffGaff recently released a report suggesting that data usage will soar with the launch of 5G mobile phone services.
Their report suggested that users will be using up to 100GB of data via their mobile phones by 2025.
The vast majority of this massive increase in data usage will be driven by video streaming of films, sports events, programmes, face to face connectivity, tutorials, lectures, comedy shows, live music events etc.
Even if they are half right it represents a dramatic change in our habits compared to how we use our phones and gadgets nowadays. This is especially true given that current data usage per month is somewhere between 2 and 3GB.
Where does this leave fixed line broadband services? Will someone visiting your home still ask for the Wi-Fi code for their mobile phone or will they simply use their 5G handset which is likely to be faster and more efficient.
It is possible to envisage a scenario whereby people living in an area of good 5G coverage will simply not bother to set up a broadband service which will cost, at today’s prices, anywhere from £20 to £30 a month. They will use the connectivity of their mobile for all their needs.
This might be something in the minds of the City, the share price of TalkTalk, the broadband specialist, has dropped dramatically over the last few years. As recently as Summer 2015 the price was over £4, at the time of writing today it is hovering around £1.10.
BroadBand companies look to be in for a tough ride over the next few years competing with high speed mobile phone connections.
In urban areas and areas of strong mobile coverage the need for a broadband connection will diminish and this is the core bread and butter markets for broadband companies, i.e. densely populated areas that can be serviced relatively easily.
Now it appears that they might be marginalised and have to fight each other over the more difficult rural areas to maintain market share let alone grow.
Here at Better Buy Insurance we are ready and waiting to insure your brand new 5G handsets as soon as they become available.