Developing Telecoms | Decision Time For Mobile Operators Faced With Declining Spend

21 May 2012

Industry News

LATEST NEWS:

Internet-free mobile Facebook, email and online chat apps platform launches... Indian telco giant taking steps into Brazil Green power solutions provider spreads into South Asia Cable agreement to bolster international connectivity in Iraq Lat Am giant looks to Netherlands to boost European footprint CSP unifying mediation systems across four Central American countries Thai operator secures wireless distribution agreement Financial services project reaching out to millions of Africans Fibre investment on the way in Algeria Android tablets gaining popularity in Southeast Asia Bharti seeking JV takeover as profits slide How an Alternative Approach to SIM Card Provisioning Helps Operators Cure t... Solar-powered learning initiative takes off in Uganda GSMA voices criticism of Indian licensing proposals Enhanced mobile broadband deploying across three Baltic countries Market developments lay the foundation for future growth in Iraq India Feels More Shockwaves from the So-called ‘2G Scandal' Overpriced broadband faces fibre challenge in Angola First commercial 4G services go live in Croatia VimpelCom sells Vietnamese assets TRAI advocates new operators entering 2G auctions Romania’s first MVNE launching imminently Indian tax change could provoke legal action from Vodafone Mobile growth slows in Iran as penetration reaches saturation point Thailand close to finalising 3G auction process Internet Exchange Points Spur Internet Growth in Emerging Markets Incoming fibre boosts investment prospects for Burundi 3G on the way in Djibouti, but competition is required Fibre, not privatisation, could be the answer for Africa’s fixed-line opera... Saudi incumbent looks abroad amidst heated domestic competition Orascom serves Algerian government with arbitration notice Kenya’s mobile sector recovering from slump Download deal aims at attracting Indian Android users

Decision Time For Mobile Operators Faced With Declining Spend

Monday, 04 June 2007 01:00 | Michael Schwartz

Attention: open in a new window.

This is according to a forthcoming report, The Future of the Global Wireless Industry: scenarios for 2007. "There is increasing uncertainty about the future of voice and non-voice services, the technologies that will be deployed and the extent to which growth will shift from developed to developing markets," says co-author Dr Alastair Brydon. "These uncertainties could lead to radically different outcomes for mobile operators and equipment vendors."

The report identifies three plausible scenarios for the evolution of the wireless industry during the next five years

Emerging Markets Thrive
Cellular Goes Indoors
Low-cost Data Pipes

In the 'Emerging Markets Thrive' scenario, mobile penetration saturation, intense price competition for voice telephony and widespread failure to achieve robust non-voice revenue growth leads to significant consolidation in developed markets. Mobile operators embark on aggressive cost reduction initiatives, such as network sharing, and avoid significant further investment to maintain profitability levels. Operators, handset and infrastructure vendors and investors focus on growth opportunities in developing countries, for voice telephony and mobile Internet services.

"We are already seeing early signs of this scenario," says Dr Mark Heath, co-author. "Despite a 23% increase in voice usage per capita, the high level of fixed-mobile substitution in Finland has not increased ARPU. Furthermore, many mobile operators are finding it difficult to achieve non-voice ARPU of more than USD8 per month. By contrast, Nokia sold almost twice as many handsets in developing countries as it sold in Europe and North America combined in the first quarter of 2007."

The report examines a number of key trends within the wireless industry and assesses their potential effects by defining and evaluating three plausible scenarios for the industry's evolution. It identifies actions for mobile operators, and handset and infrastructure vendors too.

More info: