Poor connections cost British firms over £1.3bn in lost mobile commerce
eBay set to make formal petition to Ofcom
British businesses are missing out on over £1.3bn of mobile commerce, due to poor network coverage and dodgy broadband connections.
That is according to new research from eBay, which reveals that m-commerce could quadruple in value over the next five years.
The study, carried out by retail experts Verdict, claims that, if it is properly harnessed, m-commerce could be worth £19bn by 2021; however, the authors claim the market is being held back by the limitations of Britain’s mobile networks.
They claim that 16% of the UK is an “m-commerce not-spot,” and many would-be mobile customers are either unable to connect to mobile retail sites, or have been put off by slow connections.
In fact, the authors claim that over a third of consumers have failed to conclude a mobile transaction due to broadband issues.
In an attempt to rectify this problem, eBay will make a formal submission to Ofcom, urging the communications regulator to address customer frustrations in its next tranche of mobile network regulations.
Angus McCarey, UK retail director for eBay UK 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.
“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.”