Over the next few years, communications will connect the world like never before. According to Nokia Siemens Networks’ latest estimates, the 3-billion mobile subscriber milestone will be reached in 2007, with 4 billon expected in 2010.
Some 80% of new subscribers will come from countries with a large lower-income population, as well as a fast expanding higher-income segment. Both segments offer staggering growth potential for service providers.
The Internet for all
Such is the mobile’s allure that low income end-users often prioritize their spending in order to afford a device. What they have seen is that mobile phones bring an opportunity to improve daily life, by staying in touch and finding new ways to earn a living.
The Internet has a growing role here and offers service providers a great opportunity to differentiate and win new revenue. While more affluent end-users adopt the entertainment and multimedia services seen in advanced markets, lower-income subscribers will increasingly depend on basic browsing, email and messaging for job hunting, trading and a myriad of other practical applications.
Innovation will win the day
Innovation is the hallmark of Nokia Siemens Networks’ approach to new growth markets. A good example is our cost control solution, which helps service providers tap into the potential of shared phone businesses.
The solution eliminates a common lack of trust, particularly in urban areas, between customers and the phone owner by ensuring that the correct costs are charged based on the actual tariff before the call is made. The customer pays the amount that he or she wants to spend and the shared phone owner keys in the correct amount on the device. It’s that easy.
Working with all stakeholders
With lower income subscribers contributing ARPUs as low as USD 3, maintaining profitability means service providers must offer voice and data services that end-users can afford.
Nokia Siemens Networks works closely with service providers to achieve affordability. We have a proven solution for building urban and rural coverage and capacity cost-effectively. Our core network solutions and our range of services from consultancy to operations enable service providers to bring innovative services to market quickly and run them reliably.
We also place great emphasis on working with other stakeholders that influence communications development in new growth markets.
The work of regulators is critical in creating the extensive access to communications that is vital for a country’s development. Policy makers can help boost economies by encouraging competition to drive down costs. A liberal environment is essential for widespread communications to become a reality.
Both Nokia and Siemens have worked with regulators for many years to promote greater liberalization and transparency in the communications market. These efforts will continue and our combined scope as Nokia Siemens Networks will make us even more effective.
Our strong local presence in all new growth markets gives service providers a head start in satisfying the hundreds of millions of new customers that the coming years will bring.
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