Telecom

Executive Summary

It is size that is shaping business plans for telecom companies. And so, with India and China registering the highest market growth that is where companies in this sector are routing to. The difference between countries like India and China and markets in North America is that the average revenue per user (ARPU) in this part of the world is small. Telecom equipment made for high ARPU countries like North America would not suit India

A growing breed of companies is coming to India not just for its technical talent but for business gains. In China too, companies made forays in order to leverage the low cost of manufacturing, but stayed on attracted by the sheer size of the market. Every interested party will be forced to innovate in order to meet the needs of ballooning growth in the India and China markets

Discarding the �one size fits all’ practice has been a step in this direction. It now believes that the appropriate strategy in the present highly competitive consumer electronics business would be to design a product that would be suitable for a specific market. For instance, “India needs mobile phones that are more appropriate to the Indian conditions.” In a diverse country like India, it is important to offer personalized solutions to specific target segments. “Rural customers in India, for instance, would rather buy a no-frills mobile phone, but one that is sturdy and offers enhanced talk time. The urban market, on the other hand, is looking at mobiles with high end functionality.”

In the middle of this year, China reported 310 million mobile phone users, just around one-quarter of its total population, but already more than the entire population of US. India, with a subscriber base of 45 million, is playing catch up, with mobile phone usage