Handset Manufacturers Are Facing Increasing Market Saturation and Are Forced to

There are 1.5 billion people in emerging markets who do not currently own a mobile handset but are willing and, through appropriate business models, would be able to purchase one within the next 12 to 24 months. This market segment, defined as the near-term consumer market, is found in the economic strata between those who already have a mobile phone and the 1.1 billion people living on the equivalent of less than $1 per day. These near-term purchasers are extremely price-sensitive and geographically dispersed, presenting unique challenges for handset manufacturers.

This report provides foundational tools and data to inform innovative business models that will stimulate first-time mobile handset purchases through financing and provides mobile communications business managers with strategies and tools for increasing revenues in emerging markets in a 12-24 month time frame. Data, insights and recommendations can be applied to realize revenue growth, maintain profit margins, execute within a limited budget, and set realistic internal expectations.

-Part 1 sizes, locates and characterizes the near-term handset market. An overview of the main inhibitors to purchasing a new handset is also provided.

-Part 2 describes the financial services landscape of the ten largest near-term markets, which include China, India, Indonesia, Bangladesh, Iran, Egypt, Vietnam, Brazil, Pakistan and Mexico. Through in-depth interviews with prospective near-term market candidates and local financial services experts, we offer a set of strategies to tap into formal and informal financing mechanisms to accelerate first-time mobile handset sales.

-Part 3 consists of two Resource Guides. The first includes data for 119 countries, including the size of the near-term market, overall population, mobile penetration rates as of mid-2007, and the annual income levels (ceiling and floor) for the near-term target market. The second Resource Guide provides information on more than 50 financial services organizations that are potential partners for programs to extend financial services to near-term handset market candidates. Data include the organization’s name, type and reach (clients served).

This report is part of a series of practical guides designed to assist wireless industry managers to capture incremental near-term markets in emerging markets. It provides insights and recommendations for business managers and strategists to realize revenue growth, maintain profit margins, execute within a limited budget, and set and meet realistic internal expectations without radical changes in business processes or technologies.

Key Questions Answered

-What is the size, location, and characteristics of the addressable market (one-two years) for first-time mobile handsets in 119 emerging market countries?

-What are the main inhibitors to purchase?

-Who are the major players and potential partners for financing schemes in top ten near-term markets including China, India, Indonesia, Bangladesh, Iran, Egypt, Vietnam, Brazil, Pakistan and Mexico?

-How can I leverage these partners to finance first-time mobile phone purchases?

-What are the characteristics of key US-based global microfinance networks?

-Who are the potential financing partners in the top ten emerging markets?

Content Outline:

Executive Summary and Recommendations

Key Terms and Concepts

The Near-term Handset Market

-Size of the Near-term Market

-Location of the Near-term Market

-Top Ten Near-term Markets

-Characteristics of the Near-term Market

--Income levels

--Education

--Distribution

-Consumption trends

--Purchasing Inhibitors of the Near-term Market

-Financing Options for Near-term Handset Buyers

--Financial Services Landscape

--Formal Financing Services in the Top Ten Near-term Markets

--Informal Financing Services in the Top Ten Near-term Markets

--Interaction between Financing Institutions

--Sources of Credit within the Top Ten Near-term Markets

--Portfolio of Financing Mechanisms

Resource Guides

-Worldwide Near-Term First-time Mobile Handset Purchaser Market Size

-Key Partnership Organizations in Top Ten Near-term Markets

-Characteristics of Key US-based Global Microfinance Networks

Publication Information

Endnotes

Table and Figures

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