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eBay loses £1.3bn due to slow mobile internet speeds

Published: 01/06/2011 by Comments

eBay loses £1.3bn due to slow mobile internet speeds

eBay is not satisfied with Ofcom’s mobile internet coverage. The auction website urges the regulator to improve its mobile broadband hotspots or even install new ones in order to gain back the £1.3 billion which it lost due to bad connection or faint signal.

A research made by eBay revealed that bad connection is what diverts UK buyers from mobile purchasing. The most affected are the “notspots stretching from central London to the Outer Hebrides”.

The research itself was conducted by Verdict and revealed that 16 percent of Britain is characterized as an “m-commerce notspot”, and the average level of mobile payment is a fifth below the national one.

Those who live in the Scottish highlands or Wales countryside have to settle for ordinary purchasing as the signal is weak or non-existent, explained eBay.

What surprises eBay is that populated areas such as London also get these “notspots” and cannot bid or purchase using its system.

Angus McCarey from eBay UK believes that mobile shopping is of great importance for both consumers and the economy at the same time. He said: “Mobile shopping represents a massive opportunity not just for retailers, but for the economy as a whole. But our research shows that consumers and retailers are missing out as the cost and reliability of mobile broadband prevents shoppers from spending.

Verdict did also find some good results for the next couple of years. Mobile shopping will increase four times in the next four years. This is a 100% increase per year and earnings will reach £4.5 billion by 2016. Estimates continue to show a good rise until 2021 when the total coming from mobile shopping reaches £13 billion.

Although this is wonderful news for retailers, the fact that there still are mobile broadband “notspots” out there makes things a tad bittersweet.

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