mCommerce can bring £billions to the UK … if only we had the data connections

A new study from eBay, suggests that the UK could be seeing if £4.5bn in mCommerce by 2016. The only thing holding it back are the poor mobile data connections. In a survey conducted for the online auction site by retail specialist Verdict, they estimate that 16% of the UK lacks the coverage for mobile broadband with a further 20% below average. That could result in a loss of over £1bn per year in revenues. In a study of 1500 UK consumers they found that lack of coverage, low speeds and reliability were the major barriers for mobile shopping. The costs of data is also an issue for many customers. The DMA/Empirix study published last week also found that consumers were ready to shop, but the brands were not providing the service.

eBay has sent the results of Ofcom and are pushing to speed up the delivery of 4g which will provide much faster broadband. Although 4G networks are rolling out in the US and elsewhere, the UK has yet to agree the terms on which it will be auctioned off. The operators claim they have not seen their return on the £30bn + cost of the 3G licences. Mobile is the fastest growing channel for eBay who expect to see over $4bn in sales this year. More on the report here.

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