Motorola is making a major push for emerging markets, as it aims to benefit from the fast mobile telecoms subscriber growth rate.
Speaking at the recent Moto4Africa conference, held in Zambia, regional sales director for sub-Saharan Africa Stefano Mattielo, said high growth exists in low average revenue per user (ARPU) or second tier markets, where ARPU ranges from $10 to $15.
High growth, he said, is no longer seen in markets with ARPU at $30 levels.
Mattielo spoke of a major transformation in the telecoms landscape in sub-Saharan Africa, saying that triple growth figures for mobile telecoms subscribers have been recorded in various part of the region. "Connecting people in Africa is a huge challenge, where it is believed that GSM technology will dominate until 2010."
As part of the global telecoms group`s efforts to "connect the next billion" subscribers, Motorola will drive its Reach GSM solution in emerging markets, Mattielo explained. Reach GSM delivers low entry cost network solutions with scaleable voice coverage and capacity, data services that can be switched on and scaled upwards as needed, and sustained low operating expenditure across the network.
"We may not be looking to deliver all services that are available in high-end markets, but while we are looking at cheaper options, these still need to be fully functional GSM services."
Reach GSM, he said, is essentially a portfolio of affordable wireless platforms that removes the limits on the services that operators can offer, whether they`re in "high growth" or more mature economies. Mattielo explained this can be achieved through incorporating micro-GSM base stations for rural connectivity, backhaul offerings for call transmission, a media gateway for lower call transport costs, and alternative solar and wind-generated power sources.
"From a network operators` point of view, they need to look at their business models and consider outsourcing infrastructure and alternative power sources," he said, adding that the implementation of Reach GSM would be effective through a centralised facility, with pooled resources, much like the model employed by underserviced area licensees.
Mattielo commented that in addition to GSM, other technology, such as WiMax, can provide flexibility and choice for operators in terms of how they grow their networks and keep their costs down.
WiMax, he said, is appropriate to emerging economies as it sits right in the centre of convergence, and has the potential to reduce costs and make seamless mobility happen. WiMax also has potential to become the first of a next generation of all-packet, end-to-end IP, mobility-enabled broadband networks.
Mattielo revealed Motorola is eyeing a threefold increase in revenue from the southern African region.
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