Cheap mobiles/services can tap 1.5 b more

BANGALORE: A recent study by Forrester Research, Inc. advises mobile operators and handset manufacturers to develop business models that allow them to profitably sell mobile phones and communications services to the mass market in emerging countries.



According to the research, there are 1.5 billion mobile telecom users today -- a quarter of the world's population. A further 3.5 billion people live within the coverage area of a mobile cellular network. And to grow their base by a further 1.5 billion mobile users, handset manufacturers and mobile operators need to turn to emerging nations and provide cheap phones and services for low-income consumers.



Michelle de Lussanet, Principal Analyst at Forrester Research, says, "In emerging markets like the Philippines and Iran, the per capita GDP is roughly a fortieth of that in most Western European countries and the US. To make mobile affordable for the next billion users, three factors need to change. First, handset manufacturers should not focus on producing high-end devices with fatter margins alone, but look to lower phone prices and learn to do this profitably. Also, governments of emerging markets need to curb the mostly excessive taxation and legislation that raise mobile operators' costs prohibitively. Finally, mobile operators should develop basic calling plans with all premium services stripped out to make them as cheap as possible."