Emerging
Markets Want Mobile Data But May Not Want to Pay says Pyramid
Research
Nov. 17, 2005
According to a recent study of
wireless subscribers across the BRIC countries (Brazil,
Russia, India, China), Brazilians showed the most interest in
using wireless data services. The study asked 2500 mobile
phone users under which of the following circumstances they
would use data services like wireless internet and mobile TV -
if it were free, if the price were right or not interested at
all. More Brazilians indicated that they would consume mobile
data than respondents from any other country.
While Brazilians demonstrated
the greatest enthusiasm for mobile data, they also led the
study in only wanting these services if they were free. The
price that respondents would be ready to pay for mobile data
services differed greatly depending on the application and
country. Russians are prepared to spend the most at an average
of $4.23 USD per month, while subscribers in Brazil and China
would pay around $4 USD per month, and Indian subscribers are
only willing to pay $1.50 USD.
In India, 20% of respondents
expressed an interest for mobile data applications. While the
lowest proportion of all the markets surveyed, this would
still represent an opportunity of about 27 million users. If
these subscribers opt to spend the $1.44/month mentioned as
the preferred spending level, mobile data has the potential of
generating annual revenues of $466.5 Million. Given that BRIC
countries are forecasted to add an estimated 645 million new
subscribers over the next five years, the mobile data
opportunity is substantial.
Nick Holland, Senior Analyst
with Pyramid Research recommends a measured approach to this
opportunity "With the unique characteristics of each BRIC
country, it is imperative that stakeholders equip themselves
with accurate information on the content and service
expectations of end users. The propensity for data adoption
varies greatly from country to country and a one-size-fits-all
strategy is destined for failure."
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