Nov 26, 2009

Telecom Market Evolution & Part 3 of Nortel's Story

Nortel has sold its GSM business. This article from LightReading summarizes the sales so far and the expected asset sales.

Telecom Market Discussion
Now check this article from Economist on forecasted mobile subscriber base. 2 things of note:
1. Check the forecast by 2011 when the mobile broadband subscriber base passes fixed broadband subscribers.
2.  The costing of the netbooks and other low cost computing devices meant to improve internet penetration.

Another point is that as 3G is made available across the world, the mobile eliminates the need of a separate computing device. This matters a lot to 2 types of subscribers - convenience oriented and cost oriented. The convenience oriented market has been more or less addressed.

The cost oriented ones are the ones that are forming a very large part of the mobile broadband forecast in the Economist article.

Finally, fixed broadband has a role to play in rural and other emerging areas. That is described in the intern-kiosk model that is there in Economist. And of course the folks who are already onto it in established markets.

2 comments:

P K said...

IMHO, some of these sound really exciting but when the rubber hits the road they inexplicably fail to take off. Bluetooth, for example, has been here for a decade but its success is nowhere near the hype that was generated.

Unknown said...

@Paddy - You are right about the hype. But mobiles are making a difference to people in rural areas. Also, if you see the impact of the kiosks it is remarkable. But power and connectivity remain as important concerns.

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