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   Predictions Weekly

December 7, 2007   

Pyramid Research Raises Its 2012 Global Mobile Subscription Penetration Forecast to 69%?

C&W Boosts its Wholesale Portfolio with Triple-Play Package

Rapid Growth in Bangladesh and Pakistan Comes with Challenges
Submarine Cables in Africa: The Race for Africa’s Connectivity Goes Underwater
Pyramid Research Product Updates


Rethinking MVNO and MVNE Economics

Rethinking MVNO and MVNE Economics
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Pyramid Research Raises Its 2012 Global Mobile Subscription Penetration Forecast to 69%
Author: Leslie Arathoon, VP of Research

Pyramid Research recently released its Q3 2007 Mobile Demand and Mobile Data Forecasts for more than 90 markets globally. Based on continued strong growth in emerging markets, we have raised our year-end 2007 expectation for mobile subscriptions from 3.26bn in the Q2 2007 release of our forecast to 3.3bn in our latest release.
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Pyramid Prediction: We expect mobile operators to generate a combined US$760bn in 2007, up from $669bn in 2006. Going forward, we expect global mobile penetration to top 69% in 2012, with 4.7bn subscribers generating $1 trillion in service revenue for operators worldwide.
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Pyramid Premium Analysis

C&W Boosts its Wholesale Portfolio with Triple-Play Package
Following the sale of retail broadband provider Bulldog in September 2006, London-based Cable & Wireless (C&W) continues to pursue its wholesale Internet service strategy.
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Pyramid Prediction: We believe that for the UK market, C&W’s move means more competition and service innovation, since more flexible triple-play packages will be available. For C&W, triple play will mark the introduction of a differentiated product and emphasizes its commitment to wholesaling in a cutthroat broadband retail market.
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Rapid Growth in Bangladesh and Pakistan Comes with Challenges
Bangladesh and Pakistan represent significant growth markets. We forecast that a total of 156.8m subscribers will be added to the mobile networks of these two countries between 2006 and 2012 (see Exhibit 1). Despite this attractive growth, however, the markets also have significant challenges, mainly very low ARPU and very high churn, both driven by competition for new subscribers.
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Pyramid Prediction: In our view, it will become increasingly important for operators to minimize churn and drive ARPU. Operators are addressing these issues in a number of ways to maintain a sustainable business model.
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Submarine Cables in Africa: The Race for Africa’s Connectivity Goes Underwater
After a meeting on October 15, 2007, in Johannesburg, information and communication technology ministers from Eastern and Southern African countries gave the green light for the next step in implementing a continent-wide terrestrial and submarine cable network. A feasibility study has confirmed the project’s viability, and now the group will have to raise US$2bn to cover its cost. The cable is sponsored by the New Partnership for Africa’s Development (NEPAD), a program of the African Union established to meet its development objectives, through its e-Africa Commission.
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Pyramid Prediction: We believe that the implementation of the NEPAD project is paramount to solving Africa’s connectivity issues, but governments should not hinder the implementation of privately initiated and implemented projects in an attempt to guarantee the success of the publicly funded ones, particularly since there is sufficient demand to ensure traffic for all of the projects currently planned.
Read the full article

 

Pyramid Research Product Updates:

Research Reports:
WiMAX Business Models
The Next Billion
From Triple Play to Quad Play
Rethinking MVNO and MVNE Economics

Market Perspectives:
Can Sprint’s Shareholders Hold Out for WiMAX Profitability?
Competition Heats Up in Booming Latin American Market
Low Tariffs and Low Margins — Who Says South Koreans Are Paying Too Much on Their Mobile Phone

 

Predictions Weekly reaches more than 25,000 telecommunications and media professionals each week. We differentiate ourselves from newsletters which simply recycle news by analyzing news and events against our own primary research and providing predictions based upon our views.

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© 2007 Pyramid Research, 58 Charles Street, Cambridge, MA 02141



 Research Reports
  Market Positioning and Operator Strategies for IPTV
  WiMAX Business Models
  The Next Billion
  From Triple Play to Quad Play
  Rethinking MVNO and MVNE Economics
  Can Video On Demand Save IPTV?
  The Global Mobile Capex Index
 
 Market Forecasts
  Convergence
  Fixed Operator Marketshare
  Mobile Operator KPI
  Mobile Data
  Fixed and Mobile Operator Spending
  Media