Profits boost for mobile giants from broadband

Mobile phone companies have reported a considerable boost in profits thanks to the growth in popularity of mobilebroadband, according to reports.

In posting their full year results, both O2 and T-mobile have reported strong sales figures, buoyed by mobilebroadband and the launch of 3G services.

O2 reported its mobilebroadband average revenue per user increased by nine per cent during the year, compared to a two per cent decrease in equivalent voice revenues.

Equally, T-Mobile reported total sales of mobilebroadband connections increased by 250 per cent, including the Android-based G1 phone contributing 20 per cent of all new contract sales.

Jim Hyde, T-Mobile chief executive, said that the firm is focussed on its core contract customers which, alongside other specific aspects, had ensured its losses remained low.

"T-Mobile UK has maintained its strategy of customer acquisition, focusing on its core contract customer base and other targeted segments including mobilebroadband," he explained.

"The successful launch of the Android-based G1 in October and the ongoing demand for mobilebroadband services had a positive impact on the latter half of 2008."

Delegates at the GSM Association's Leadership Summit recently heard that the deployment of high-speed mobilebroadband networks has the potential to drive economic growth throughout Europe.