31 May 2011 | Author: N. Hamilton Media copywriter
Ebay says slow broadband speeds are costing big - as poor mobile broadband connections have slowed the growth of m-commerce, which could otherwise grow to become a £19 billion industry by 2021.
According to Brand Republic, research commissioned by Ebay forecasted mobile shopping sales of £4.5 billion by 2016, with a further £13 billion by 2021.
But even though mobile sales are expected to grow exponentially, a poll of 1,500 consumers indicated slow mobile connections and unreliable broadband coverage could slow the multibillion pound growth of m-commerce.
The Ebay commissioned poll attributed poor broadband speeds and coverage for currently costing e-retailers £1.3 billion in uncompleted sales, as nearly one third of British consumers have been unable to complete a purchase using a smart phone.
What's more, the poll revealed mobile e-commerce spending clocks in 20 per cent lower in rural areas where broadband service is poor.
Twenty-three per cent of consumers surveyed told Ebay they would like improved coverage in rural areas, while 14 per cent said improving rural broadband should be a priority for telecoms firms, the government and e-retailers.
Thirteen per cent of consumers said improved mobile broadband connections on public transport would encourage them to make mobile purchases. While more than half of consumers said uncapped data or cheaper data download charges would encourage them to spend more on m-commerce.
Angus McCarey, UK retail director for Ebay, told Brand Republic the firm would petition Ofcom to consider the importance of m-commerce to Britain's economic recovery before ruling on 4G later this year.
"High quality and reliable mobile broadband coverage throughout the UK has to be our ambition, giving consumers choice over when and how they shop, encouraging spending, thereby benefitting online and high street retail, and giving a much needed boost to the fragile economic recovery," McCarey added.
The news comes just a fortnight after Britain's culture secretary announced government plans to launch a large-scale superfast broadband rollout by 2015.
Under the plans, broadband speeds of up to two megabits per second (Mbps) will be available throughout Britain by 2015, with 90 per cent of the country also benefitting from superfast 25 Mbps connection speeds.
Ebay says broadband speeds stymie the growth of m-commerce
Ebay says slow broadband speeds are costing big - as poor mobile broadband connections have slowed the growth of m-commerce, which could otherwise grow to become a £19 billion industry by 2021. According to Brand Republic, research commissioned by Ebay forecasted mobile shopping sales of £4.5 billion by 2016, with a further £13 billion by 2021.
But even though mobile sales are expected to grow exponentially, a poll of 1,500 consumers indicated slow mobile connections and unreliable broadband coverage could slow the multibillion pound growth of m-commerce.
The Ebay commissioned poll attributed poor broadband speeds and coverage for currently costing e-retailers £1.3 billion in uncompleted sales, as nearly one third of British consumers have been unable to complete a purchase using a smart phone.
What's more, the poll revealed mobile e-commerce spending clocks in 20 per cent lower in rural areas where broadband service is poor.
Twenty-three per cent of consumers surveyed told Ebay they would like improved coverage in rural areas, while 14 per cent said improving rural broadband should be a priority for telecoms firms, the government and e-retailers.
Thirteen per cent of consumers said improved mobile broadband connections on public transport would encourage them to make mobile purchases. While more than half of consumers said uncapped data or cheaper data download charges would encourage them to spend more on m-commerce.
Angus McCarey, UK retail director for Ebay, told Brand Republic the firm would petition Ofcom to consider the importance of m-commerce to Britain's economic recovery before ruling on 4G later this year.
"High quality and reliable mobile broadband coverage throughout the UK has to be our ambition, giving consumers choice over when and how they shop, encouraging spending, thereby benefitting online and high street retail, and giving a much needed boost to the fragile economic recovery," McCarey added.
The news comes just a fortnight after Britain's culture secretary announced government plans to launch a large-scale superfast broadband rollout by 2015.
Under the plans, broadband speeds of up to two megabits per second (Mbps) will be available throughout Britain by 2015, with 90 per cent of the country also benefitting from superfast 25 Mbps connection speeds.
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