Saturday, February 06, 2010

Mobile - Demand for smartphones driving Vodafone's broadband revenue

[broadband finder] Vodafone's mobile broadband revenue is rising significantly, largely as a result of the surge in demand for smartphones.

The firm's takings in its mobile broadband sector topped £1 billion for the first time during the final quarter of 2009.

Its performance was especially good as it did not become an official stockist of the iPhone until the new year, meaning it missed out on lucrative pre-Christmas sales.

Such a promising performance has made Vodafone a top target for investment, according to the Share Centre.

Nick Raynor, the centre's investment manager, says: "We believe the company should continue to deliver steady growth for shareholders as demand for data-intensive smart phones, such as the iPhone continues to grow."

Total revenue for the three months to December 31st rose by 10.3 per cent to £11.5 billion - which could be in some part down to the increased interest in smartphones.

Apple's iPhone and other smartphones - such as those by BlackBerry and Google's Nexus One - offer reliable and fast mobile broadband which can be seen as more suitable than the connection offered by a laptop by some people.

Vodafone recently joined Orange, O2 and Tesco as the only telecommunications providers able to stock and sell the iPhone.

The firm has also released its Sure Signal product this month, which enables those using mobile broadband devices to gain an improved connection.

A Vodafone survey suggested that one-in-five people have missed an event, business meeting or social occasion as a result of an unreliable internet connection - something Sure Signal aims to make impossible.

Demand for smartphones driving Vodafone's mobile broadband revenue

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