Computerworld Philippines Staff
September 24, 2009

Differentiating mobile broadband in emerging markets from that of mature ones will drive its success, a new analysis from global consulting firm Ovum said recently.

The consulting firm said that pragmatism—or approaching the goal in a practical manner—must be the watchword in terms of access to technology, devices, deployment and market approach.

“Operators today are taking a far more pragmatic approach to mobile broadband in emerging markets than in developed markets, focusing more on the service offered (web access) than the technology or device,” it said.

This virtue of pragmatism, Ovum noted, is likewise evident in the approach to deployment of services, although the competitive landscape should dictate the operators’ respective strategies. “Operators should take a more conservative view of technology and service rollouts to ensure demand and profitability before committing too much finance, where competition (or the threat of it) from fixed and mobile operators is limited,” said Steven Hartley, senior analyst, Ovum.

Hartley added that operators should best be “skimming” the most profitable segments of the market if they can. ““If competition already exists in the market then they may be forced into a broader, mass-market approach from launch,” he said.

Customer segmentation, Hartley advised, is the best strategy to use to ensure success in emerging markets. This does not apply, however, to the success of mobile broadband in these areas, for these are still outside the operators’ control. “Governments have a major role to play in providing an environment conducive to success; spectrum policy is the clearest example of this, either through its release to operators or through global harmonisation to benefit from economies of scale,” said Daniel Subramaniam, analyst at Ovum. – John Mark V. Tuazon

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