Oldham rings up cost of bad mobile internet

Date published: 31 May 2011


UNRELIABLE mobile phone broadband connections are costing Oldham millions of pounds in commerce, say researchers.

A study by eBay shows shopping on mobiles could deliver a £44.9million consumer spending boost to Oldham’s economy by 2016 and £148.6million by 2021.

It reveals that Oldham has already experienced a four-fold increase over the past year as consumers embrace the idea of shopping on their handsets.

But the study says unreliable mobile broadband is holding back the market, costing Oldham retailers a loss of sales of £8million.

Network coverage, reliability, cost and speed of mobile internet connections are blamed.

Now eBay is calling on regulators to enable “m-commerce” to support the UK’s economic recovery. In a submission to communications regulator Ofcom, the internet shopping giant is calling on policy-makers to do more to address consumer frustrations when rules for the fourth generation (4G) of mobile networks are agreed later this year.

Oldham is one of the top 20 UK hot-spots for m-commerce, with spending over 17 per cent higher than the national average.

Angus McCarey, UK retail director for eBay UK, said: “Our research shows the huge opportunity mobile shopping presents not only for retailers, but for the economy as a whole. But consumers and retailers are missing out as the cost and reliability of mobile broadband and data prevents shoppers from spending.

“Quality and reliable mobile broadband coverage throughout the UK has to be the end goal. It will give consumers the choice of when and how they shop, and it will encourage spending, thereby benefiting online and high-street retail, and giving a much-needed boost to the fragile economic recovery.”