WinWin
Editorial--Wisdom of emerging markets
WinWin (Issue 03)

Emerging telecom markets feature low mobile teledensity, yet are home to around 85% of the world' s population. In the past 5 years, however, mobile teledensity and revenues in these markets have gathered momentum, with the average mobile teledensity currently reaching 70%. Informa is predicting that emerging markets will account for most of the world' s future mobile subscriber base, with projections ranging up to 1 billion. 

Because of the huge growth potential, these booming emerging markets are receiving increased attention. Tier-1 operators such as Vodafone, Telefonica and Deutsche Telekom are beginning to explore emerging markets to maintain growth momentum. Local operators, such as MTN, Mobinil in Egypt, and America Movil in Mexico, are accelerating expansion in these markets and more operators mean stiffer competition. 

Moreover, subscribers are highly price-sensitive and tariff rates in these markets have shrunk. In 2008, India' s mobile operators saw their revenue per minute drop 50% compared to 2007. Operators are becoming hard-pressed to generate enough profits from emerging markets for sustainable development, shifting their focus from expanding subscriber base to delivering enhanced service experiences through higher-quality networks. Only in this way will they be able to retain existing subscribers, increase ARPU, and attract more quality subscribers. 

In this issue of WinWin, we invite India' s IDEA and the Philippines' Globe to share their unique ideas and strategies for business development. Other articles include the successful experience of STC in its expansion to Kuwait market, and the successes of Mobinil of Egypt, Grameenphone of Bangladesh and Tata of India. You will also find inside the latest research on mobile Internet development and business models. 

Huawei has extensive knowledge and rich experience in emerging markets, for that is where we came from. We continue our commitment to providing and sharing cutting-edge technologies and solutions with operators in emerging markets, helping them quickly deploy networks and launch services. Hopefully, these ideas can help operators develop a deeper insight into telecom industry trends, bring telecom access to more subscribers and bridge the global digital divide.




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