In today’s telecom business dynamics, emerging markets are of great interest to the entire wireless ecosystem and Indian region is playing a very important role in terms of defining the future growth for 3G in this region.
The country is providing tremendous opportunity for 3G driving applications and service growth while substantially improving the quality of life for residents as well. However, operator community needs to master the art of 3G execution in order to increase their profitability coming in from the 3G segment.
Whether it is Airtel, Idea or Aircel, Reliance Communications or BSNL, today’s next generation operators and service providers are utilizing innovative business models and cutting edge 3G technologies to deliver popular and profitable data services in the country. Hence, operators are turning towards 3G when it comes to making that extra push towards delivering data based services at their end customers.
Significance of Emerging Markets.
In today’s scenario, emerging markets comprise about 20% of world's economies and 85% of the world’s population. They include most countries in Latin America, Africa, the Middle East, Central & Eastern Europe and many parts of Asia Pacific with notable exceptions.
These are more than just mere attractive markets for wireless operators for multiple reasons including that they are expected to provide 87% of net adds worldwide between 2007 and 2010, and expected to provide 5 to 6 times greater GDP growth than developed countries in a similar period. Moreover, providing wireless communications to these otherwise largely unconnected populations enables them to dramatically improve their quality of life. Such services facilitate employment growth and help improve education, medical care, and social services.
Opportunities in Emerging Markets.
Emerging markets have a different socio-economic characteristic, which offers many opportunities for businesses towards their growth path. From a device perspective, emerging markets often have low PC and laptop penetration thus positioning handsets and smart phones to offer data as well as for voice services.
On the other hand, if we talk about from a communications services standpoint, voice use is typically under-saturated, while data use is much less developed. As a result, there is usually considered to be great pent-up demand for both services. In this kind of situation, wireless data services must be designed in such a way so as to run on low cost devices with little memory, low-end processors, and at the same time plenty of battery life. Moving forward, more and more operators are likely to focus their bigger efforts towards making sure that most of their subscriber base connects with 3G and create better demand generation mechanism for the success of data services.