Recently many people have argued that mobile broadband has reached a stage in Sweden where it can replace fixed line broadband. Reports of the Swedish Post and Telecom Agency state that the traffic of data in the country’s mobile broadband network has grown four times. Further data consumption by mobile broadband subscribers has also grown to almost double last year making many believe that this replacement is possible.
This fast change has been due to mobile broadband in
However, the same low prices may upset the profit margin of the companies, as they will try reducing prices further to unsustainable levels in order to attract more subscribers. Undercutting will be bad for the industry and thus, before mobile broadband can become a substitute for fixed broadband, it is important to have a price structure in place in order to protect the industry.