The emerging markets and mobility

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Emerging countries are leading the boom in cellular markets. Rapid economic growth has increased disposable incomes and many consumers have acquired mobile phones for the first time.

The strong performance of emerging markets is attracting an increasing amount of capital that used to be invested in developed economies. Analysts from Markham Capital say that over the last year the stock markets of emerging economies have soared, with Indonesia (+38%), Chile(+34%),and India (+23%) leading the pack. In contrast, the U.S. stock market is up by only around 2%.

Investors have recognised that rising wages will lead to the development of an aspirational middle class. The emerging economies understand that they can no longer count on the developed economies to fuel growth and as a result are increasingly focusing on domestic consumption.

Emerging economies can typically rely on a large, younger demographic, a growing and aspiring middle class, extensive natural resources, increased access to telecommunications, home-grown agile technologies and investment finance.

According to research company, iSuppli, there are now over 5 billion mobile subscribers globally, with the fastest growth and volume of subscribers seen in markets like Africa, India and Asia-Pacific.

Emerging countries are also leading the boom in cellular markets. Rapid economic growth has increased disposable incomes and many consumers have acquired mobile phones for the first time. In most emerging economies, mobile phones have had faster uptake than Internet or fixed-line telephones, as a result of the limited infrastructure.

Not all emerging markets are the same, however. Some are maturing and becoming more developed at a faster rate than others. For many emerging markets’ telecom service providers, the priority is shifting more to customer retention and growth than acquisition. Entry-level smartphones are emerging that will stimulate demand for the delivery of new mobile Internet services such as mobile banking. The awarding of 3G licenses also opens up opportunities around mobile broadband.

Government support, enterprise and business requirements, consumer demand, access to new devices and apps, new technologies and new business and revenue models are seen by telecom service providers as the key drivers for the emerging markets.