Analysts at Ovum have announced a number of predictions for the telecoms industry in 2011, with expectations that Windows 7 will become the fastest growing platform for smartphones, while the mobile landgrab in emerging markets will begin to slow down with emphasis shifting to broadband.
It is thought that telecoms markets in the emerging markets of Africa, Asia, Eastern Europe and Latin America will see intensified competition that will lead to lower prices, slower growth and indeed lower margins.
It is noted by Ovum analyst Angel Dobardziev that the “land grab phase” which occurred in the last decade will begin to wind down in 2011. Although it is noted that there are areas of Africa and Asia that still contain potential customers, they are predominantly in rural areas that are hard to reach, and so are not attractive to service providers.
“For service providers all of this will mean that 20-30 percent subscriber and revenue growth rates will become increasingly rare, and single digit or low double digit growth will be the norm, particularly in regions such as Eastern Europe and Latin America,” said Dobardziev.
“Competition will intensify as players increasingly focus on winning market share from each other.”
Furthermore smartphones will increase their proliferation across emerging markets, with significant reductions in device price points expected combined with the increasing capabilities of mid range devices.
“This will be great for users, who will enjoy bigger, better, and faster devices services and services – mostly at lower prices. To deliver this and retain their margins, operators will increase their cost efficiency efforts.”
Meanwhile broadband access is forecast to become much more prominent in emerging markets during 2011, with the expectation that will become the fastest and most promising growth engine, amid the rapidly growing coverage of 3G and to a lesser extent wireline, cable, WiMAX, and in some instances fibre, according to Dobardziev.
“There will be parallels with the mobile land grab in the intensity of the battle, but the explosion of data traffic that will ensue will pose a new set of network and financial challenges to telcos – and a massive opportunity for equipment vendors.”
It is thought that telecoms markets in the emerging markets of Africa, Asia, Eastern Europe and Latin America will see intensified competition that will lead to lower prices, slower growth and indeed lower margins.
It is noted by Ovum analyst Angel Dobardziev that the “land grab phase” which occurred in the last decade will begin to wind down in 2011. Although it is noted that there are areas of Africa and Asia that still contain potential customers, they are predominantly in rural areas that are hard to reach, and so are not attractive to service providers.
“For service providers all of this will mean that 20-30 percent subscriber and revenue growth rates will become increasingly rare, and single digit or low double digit growth will be the norm, particularly in regions such as Eastern Europe and Latin America,” said Dobardziev.
“Competition will intensify as players increasingly focus on winning market share from each other.”
Furthermore smartphones will increase their proliferation across emerging markets, with significant reductions in device price points expected combined with the increasing capabilities of mid range devices.
“This will be great for users, who will enjoy bigger, better, and faster devices services and services – mostly at lower prices. To deliver this and retain their margins, operators will increase their cost efficiency efforts.”
Meanwhile broadband access is forecast to become much more prominent in emerging markets during 2011, with the expectation that will become the fastest and most promising growth engine, amid the rapidly growing coverage of 3G and to a lesser extent wireline, cable, WiMAX, and in some instances fibre, according to Dobardziev.
“There will be parallels with the mobile land grab in the intensity of the battle, but the explosion of data traffic that will ensue will pose a new set of network and financial challenges to telcos – and a massive opportunity for equipment vendors.”
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