Embed vs. Embeddable: 3G Notebooks and Mobile Broadband

The world and its blog seems to have gone crazy over Dell's (DELL) cute new Mini 9 netbook, which stacks up against the Asus eeePC and HP 2133 (HPQ) and a range of other upcoming mini-notebooks.

However, there is much disappointment in the US that the device won't necessarily come with 3G built-in, unlike Vodafone's (VOD) loudly-trumpeted version for Europe. I think this is something we'll see more of.

I've been doing a lot of research lately on 3G-embedded notebooks and mobile broadband, and the simple fact of the matter is that (for now) it makes no economic sense to include a 3G module and antenna in a PC unless it's definitely going to be used for a mobile subscription. Otherwise it's just a costly lump of extra electronics - not ideal for consumer or retailer - which would hurt the competitiveness of the PC in the marketplace.

At the top end of the market, 3G might start to become a "standard" feature, but if you're trying to sell a $300 low-end netbook with $50+ worth of unused tin inside, it won't make your gross margin look very pretty.

What we'll see is many notebooks coming with the possibility of 3G being embedded for specific markets and specific channels (ie mobile operators who want to sell/subsidise it), just the same as the laptop coming with the possibility of extra memory, or a red casing, or different preloaded OS and applications. (And no prizes for guessing that the slot might support a variety of other comms modules in future - perhaps WiMAX, EVDO, or one of Qualcomm's (QCOM) multi-standard Gobi's).

There might also be some clever ways of OEMs retrospectively paying (or getting a bounty) for the cost of a module if it's activated at some date after purchase, but I can't see that being too common a business model in the near term.

In other words, theoretically 3G-embeddable notebooks will be much more prevalent than actual 3G-embedded ones for the next few years at least.

Disclosure: None

Comments

[Sunil Jain:]

The same logic (as above) was prevalent in the early days of WLAN. Why embed WiFi chipsets unless it's definitely going to be used, since it's just a costly lump of electronics. Now, WLAN is standard in almost all handsets. However, the issue of embedding 3G is unfortunately much more complex because of multiple standards. When we moved from 2G to 3G, people believed that we will have one global standard. Well, we don't (CDMA2000, WCDMA, etc.). Now, we are moving from 3G to 4G, we still don't have one standard (LTE, WiMax). Unfortunately, this has nothing to do with technology but corporate greed (who has more patent than the other guy). Nokia fought the IP battle with Qualcomm on 3G but lost (or settled). More battles will follow with LTE and WiMax on the patents. Laptop manufacturers will still have to pay royalties to QCOM or others for every 3G/4G chipset that they embed on their device. This is not the case for WLAN. makes the decision more difficult, doesn't it? I don't believe that the wireless industry is going to get its act right till 6G or 7G (btw, they excuse their "corporate greed" by calling it "fostering innovating"). Laptop manufacturers will continue to make guesses on what technology to embed (where the mass market is). This was the case for 3G, and now, it will continue to be the case for 4G going forward. sucks !!

2008 Sep 10 05:06 PM

[MobileDataUK:]

Even in the UK at the moment with Mobile Broadband with laptop deals being very popular, the feature comes on a USB stick, rather than built-in to the laptop.

2008 Sep 14 05:26 PM