Vodafone’s purchase of a 67 per cent controlling stake in Hutchison Essar focused the Barcelona conference on the growth markets of emerging economies like India and China.
A recurring theme at 3GSM had been discussion about “the next billion” – that is, the next billion handsets that will be sold around the world. And it will be India and China that drive that growth.
For Vodafone, the Hutchison Essar deal gives the company headroom to grown, and reduces its reliance on the saturated mobile markets of Europe.
India’s 1.1 billion population currently boasts a mobile telephone penetration rate of just 13 per cent. But it is growing by more than six million subscribers every month, making it the fastest growing market in the world and the focus of the industry.
China’s mobile market is relatively mature with a mobile penetration of 40 per cent, while Europe’s is a replacement market only with 100 per cent penetration.
Hutchison Essar already has a customer base in India of 23 million. But Vodafone chief executive Arun Sarin expects that to grow to 100 million in three years.
That growth would give Vodafone 25 per cent of the total market, as the Indian government forecasts that there will be 500 million mobile phones in the country by 2010.
“The next billion” handsets would be offer very different services and would be sold much faster, the 3GSM conference was told.
Convergence continues to be a critical industry theme, with most expecting much close tie-ups between telecommunications companies and entertainment companies – the so-called phone and fun leaders.
For more Wireless news click here.
