M-commerce could be worth £19bn by 2010 but retailers could be missing out on a significant number of sales due to problems with mobile broadband connections.
Research by online auction site eBay has revealed that Britain's economy could see a £4.5bn boost from mobile shopping by 2016, and a further £13bn by 2021, as consumers become more comfortable shopping on their mobile handsets.

Verdict Research consulting director Neil Saunders said: "With the increasing proliferation of smartphones, more and more consumers want to make the most of the convenience of being able to shop on the move. Retailers need to move fast to optimise their websites and capture the growing market."

However, Verdict Research also warns that the market is being held back by unreliable mobile broadband, with retailers missing out on at least £1.3bn as a result of consumer frustrations with patchy coverage, unreliable connections and slow connection speeds.

In fact, more than a third of consumers are said to have failed to complete a purchase on their mobile due to issues with mobile broadband. The cost of data was also an issue for consumers, with 80% of shoppers put off by the extra expense of browsing using their mobile device.

According to the research, 16% of the UK is an 'm-commerce not-spot', where mobile spending is at least 20% below the national average. As expected, some of the more sparsely populated areas, such as the Outer Hebrides, Scottish Highlands and rural parts of Wales are the worst affected. However, evidence also found that parts of central London are also affected, with London WC recording a mobile spend 38% below the national average.

Birmingham was the best performing area for m-commerce, with its mobile spend 75% higher than the national average, followed by Chester, Leeds, Romford and Halifax.

eBay UK retail director Angus McCarey 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 benefiting online and high street retail, and giving a much-needed boost to the fragile economic recovery."