File sharers will not give up their illegal habits so easily. At least, that is what a recent study preceding the final publication of Lord Carter’s Digital Britain report has to say.

paidContent:UK, in close collaboration with media lawyers Wiggin, have concluded from a survey that warning letters from internet service providers would deter not even half of the illegal file sharers who pirate copyrighted content online.

The Digital Entertainment Survey found that most of the persistent offenders (80 per cent) would stop sharing files illegally at once if warning letters came with the grim threat of broadband disconnection. This is a significant increase from the 70 per cent of similar respondents, who admitted to mending their ways under similar circumstances when questioned for the Digital Entertainment Survey last year.

This drop can be attributed to the fact that this year respondents were asked to consider the possibility of a communication involving no definite threat. Last year’s figure was 70 per cent because the respondents had assumed that the communication was an introduction to further action. It is evident that much more focused action is required to discourage file sharers from continuing with acts of piracy.

So far, there has been a rather frigid response to the suggestion to cut off broadband connection of anyone found downloading copyright material. Charles Dunstone, the CEO of Carphone Warehouse remarked recently in an interview with The Guardian newspaper, that even with technical strategies in place, net pirates would always find new and more advanced means to download copyrighted materials. For more info on Virgin Media Broadband, a dedicated site like Broadband Genie is a good place to look, the broadband blog and articles offer a good insight into the various ISP’s practices.

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Vodafone has come out with its Q4 results and has taken observers with surprise. At a time when most other industries are struggling to even survive, it seems mobile broadband service providers have had a very good year.

The company has reported a 14% spurt in growth, which on a closer look at the numbers seems to be driven by a 25% growth in data services. The company has also added close to 450,000 new subscribers in UK, which again is a very impressive achievement, given the current economic scenario.

O2, a peer of Vodafone reports its numbers later and is expected to do better than the rest of the industry. Matthew Key who is the CEO of Telefonica (O2’s parent company) believes that O2 is likely to beat the competition again this year, as it has been doing in the past. He is also quick to offer a worrying sign for the industry that consumers have become much more value conscious and much less keen on long-term deals.

The mobile industry is undergoing major technological improvements right now, with sophisticated 3G handsets and enhanced mobile broadband services being launched. After the current set of numbers, people are expecting the industry to do reasonably well in the slow down, but only a brave man can predict the extent and impact of the current recession.

Studies are beginning to show that broadband operators are beginning to turn into credit issuers just like mobile operators. Around the world, it has now become a standard practice for mobile operators to allow customers to buy digital goods and services, and then be billed on their mobile bills. Now it seems that broadband operators are beginning to follow suit and showing an interest in establishing a similar system. In addition to the basic and standard offers, broadband operators are now looking into offering 3^rd party content and services, which will generate additional revenue. The trend has already started, but the question is, how far will they go?

As broadband and mobile broadband operators open up their bills to additional charges, they should have measures in place to eliminate or minimize risks. They should also evaluate the risks vs the benefits. They could have a limit on spending based on the consumer’s credit assessment. Once the consumer reaches the limit, they should no longer be allowed to use their bills to buy goods or services. Another means would be for the operator to only pay the third party/partner after the user pays for the purchase.

These broadband and mobile broadband operators are always thinking and exploring ways to increase revenue. This kind of third-party purchases/billing is definitely one way of doing so. This essentially makes them credit issuers, but to what extent is still unclear. So far, this off-portal market has proved that the micro-payments for purchase of digital goods and services, actually yields financial benefits. The benefits and the consumer justify the risks they run when giving out the credit.