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Cellular modem sales set to boom

Cellular modem sales could exceed $22 billion by 2013, according to a new report from ABI Research.
The firm noted Sprint Nextel Corp. recently lowered its mobile broadband prices for using cellphones as modems but left the price of using PC Cards and USB modems unchanged. But cellular modem sales will weather that threat, the firm said.
“Customers want mobile broadband experiences like those provided by their PCs, meaning they want the fastest devices,” said principal analyst Dan Shey. “Phones with at least 3G radios threaten cellular modem sales; however shipments of these modems will not exceed 30% of cellular handset shipments by 2011.”
The firm said industrialized countries will see deeper penetration of mobile broadband devices, but business customers will who prefer convenience could opt for PC Cards and USB modems in greater numbers.
Also, the growing penetration of embedded cellular connectivity on laptops and notebooks will reduce the need for external devices.

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