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Global Markets: In just over three years time
almost 70% of the world’s telecoms connections will be in emerging markets - up
from just over 50% at present. IDC makes this highly encouraging forecast in
its latest report on key markets. Read our summary of the IDC report - or
ignore the emerging markets at your own risk!
Emerging Markets Soar
 Emerging markets hold the key to
future telecoms growth and innovation. What is more they account for more than
half of the world's total telecom connections - a percentage that will grow to 69% by 2010. These are the
predictions of telecoms analyst IDC in a brand-new report Mobile Device ARPU
for Leading Markets: US, UK, Germany, India,
and China - A Multi-client Study.
While sceptics point to a multitude of problems such as low
disposable income and lack of competition, the rate of economic and population
growth means that developing regions offer major potential for communications
expansion. Telecoms companies should ignore them at their own risk.
Leading handset brands cover the world
The more detailed results of IDC’s recent multi-client
study and survey of mobile phone and smartphone subscribers across five
countries reveals that top global brands are in demand not only in developed
countries, such as the US, UK, and Germany, but also in emerging countries such
as India and China. The relative influence of brand on product choice
(especially in China and India) suggests that many people seek out global brands and the prestige
that they carry.
Logic dictates that one would expect to find the
proliferation of relatively inexpensive devices and brands in developing
countries, but IDC’s survey reveals quite the opposite phenomenon. Chinese
subscribers look more at the brand and style (top two purchase criteria) rather
than being concerned with the underlying technology and product features. In India
high-end products like the Nokia Communicator 9500 do well precisely because
they show off how wealthy and successful an individual is, and users tend to be
loyal to the smartphone brands they carry. IDC’s survey revealed that 69% of
respondents in India were likely to recommend their smartphone brand to others, higher
than the other countries surveyed except for the US.
“When you look around the world there is a growing
prevalence of premium brands in emerging markets among populations with
substantially lower income levels,” in the opinion of Randy Giusto, Group
Vice-President for IDC’s Mobility, Computing and Consumer Markets Research.
“Brands such as Nokia, for example, dominate the Indian and Chinese markets
from a market share perspective and are much sought after because of the image
that they project.” Features
The IDC special report explores which key mobile device
features, operating systems, and applications influence ARPU, and compares and
contrasts them among users in the five countries. Data is segmented by mobile
phone and smartphone respondents, as well as by smartphone OS and by mobile
operator, for each country market surveyed. This document represents a
comprehensive study outlining the summarised results of each country, comparing
and contrasting results by country, and exploring the role that device
features, applications, operating systems, mobile device brands, and mobile
operators play across these markets.
* Randy Giusto and
other IDC research analysts will be present at 2007 International CES in Las Vegas from 8-10 January.
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Date: 22 - 26 September, 2008