The provision of fixed broadband is becoming essential for mobile operators and they could quickly recoup the substantial investment necessary to offer their own unbundled DSL services if they achieved strong service uptake, says Analysys, the global advisers on telecoms, IT and media.

"DSL services can generate nine times the ARPU earned by many mobile operators today from mobile data services. However, the challenge is to offer such services profitably," says Dr Mark Heath, co-author of the Analysys report, Mobile Operator Strategies for Fixed Broadband.

"If 10% of its customers subscribed to DSL services, a large mobile operator could achieve a 16% cost saving in the provision of DSL services by investing in its own LLUB network," adds Heath.

Other key findings of the report include:

- There is a strong case for mobile operators bundling fixed broadband with their traditional mobile services. However, as investors increasingly focus on bottom-line performance and on revenue, operators must ensure that broadband services do not damage their profitability. With the wrong implementation choice, margins could be wafer thin.

- While wireless technologies, such as HSPA, CDMA2000 1