3GSM keynoters: Opportunity lies in emerging markets

BARCELONA, Spain-The show is in Europe, but Wednesday afternoon’s keynote address at 3GSM World Congress in Barcelona, Spain, was all about emerging markets in Africa, Asia and South America.
While handset penetration nears-and perhaps surpasses-100 percent in more advanced markets, carriers, content providers and phone manufacturers should feast on the low-hanging fruit of developing markets, according to Wednesday’s speakers.
“It’s an amazing testament to where we are as an industry that this room is packed,” Telenor CEO John Frederik Baksaas told attendees. “We anticipate there are 3.8 billion people still without” access to wireless networks.
The Norwegian carrier has gained traction in developing European markets, Baksaas said, as well as in Pakistan, Bangladesh and other Asian markets.
While such territories present substantial challenges to mobile companies-users typically earn far less than their counterparts in the West or Far East, requiring cheaper handsets and no-frills service-they also offer opportunities not found in other markets. Fishermen can use wireless phones at sea, for instance, so they can find the highest-paying markets to deliver their catch. Wireless phones also are often used for both voice and Internet access where fixed-line infrastructures don’t exist, and can be used to transfer funds in regions where banks are scarce.
“Mobile-phone services might be available where the nearest bank branch might be a two-hour bus ride away,” said W. Roy Dunbar, president of global technology and operations for Mastercard International. “The rate of mobile payments could parallel the adoption of mobile communications in the developing world.”