News From Telecom World

3G Services in Asia, Africa Meet Crucial Needs

Posted on: September 17, 2008

The latest study of 3G in Emerging Markets, from Strategy Analytics concludes that 3G will meet a pressing need for voice and some data services in under-served markets, but as most of these markets are hugely price sensitive, operators will have to redesign 3G business models to subscriber affordability levels if the technology is to become broadly available.

Strategy Analytics believes that in order to establish a critical mass of acceptance, 3G in both African and emerging Asian markets will have to penetrate the business user and high-end prosumer segments with competitive broadband internet tariffs in the first instance.

Rahul Gupta, Manager, Emerging Markets Communications Strategies for Strategy Analytics noted, “The price of 3G devices will not be the sticking point. We believe that device prices will be broadly affordable in these markets given the efforts of vendors like ZTE and chipset leader Qualcomm. Thus, the success of 3G depends on the pricing and level of innovation shown by operators. We see a huge potential for 3G services in emerging Asian and African markets”.

David Kerr, Vice President at Strategy Analytics, added, “India and China are the key battlegrounds for 3G in 2009. India looks particularly promising from a 3G perspective given the nine million new subscribers added each month, the huge base of local content developers and the stringent competition brought about by three metro and up to five rural area 3G licenses on offer if the current licensing approach withholds legal challenge from Indian regulators.”

Source: Cellular News

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