Mamma MEA! France Telecom Turns to Middle East, Africa for Future of Wireless
Getting a foothold in the market early may prove useful for the company.
While the Chinese and Indian markets are expected to drive the wireless ecosystem through 2014, some companies are already looking to a future where the Middle East and African (MEA) countries are the focal point of the industry, according to iSuppli Corp.
For example, France Telecom Group (FT) plans to infuse the region with as much as 7 billion euros during the next five years. The goal for FT is to double its revenue coming from the MEA market during these five years to determine whether future investments will be needed or necessary.
Currently, the forecast for cell phone subscribers in the Middle East and Africa is expected to grow to 1.0 billion subscribers by 2014, rising at a Compound Annual Growth Rate (CAGR) of 9.2 percent from 646.8 million in 2009.
MEA Culpa
FT’s move to gain a foothold in the Middle East and Africa is shrewd given that the regions may represent the only remaining developing areas on earth for the wireless industry. With China and India well on their way to progressing beyond being emerging markets for the wireless industry, MEA is the final stop for the wireless bandwagon.
The move by FT is considered risky, considering the unpredictable political climate in both Africa and the Middle East. Any gains for FT in the MEA region could be imperiled if another war or terrorist attack erupts.
However, this move could pay off in spades for the company as it is getting in on the ground floor of the MEA region at a time when most of the rest of the world is still focused on Asia and India.
In light of the close governmental ties between China and some African nations, laying the groundwork early in this region by France Telecom could provide a much-needed footing for European influence in the wireless communications market there.
iSuppli does not expect significant returns from any investments in the region for another five to seven years. But obtaining an early toehold may be a key for FT to become a significant player when the time comes for MEA to emerge as a player in the wireless communications market.
While the Chinese and Indian markets are expected to drive the wireless ecosystem through 2014, some companies are already looking to a future where the Middle East and African (MEA) countries are the focal point of the industry, according to iSuppli Corp.
For example, France Telecom Group (FT) plans to infuse the region with as much as 7 billion euros during the next five years. The goal for FT is to double its revenue coming from the MEA market during these five years to determine whether future investments will be needed or necessary.
Currently, the forecast for cell phone subscribers in the Middle East and Africa is expected to grow to 1.0 billion subscribers by 2014, rising at a Compound Annual Growth Rate (CAGR) of 9.2 percent from 646.8 million in 2009.
MEA Culpa
FT’s move to gain a foothold in the Middle East and Africa is shrewd given that the regions may represent the only remaining developing areas on earth for the wireless industry. With China and India well on their way to progressing beyond being emerging markets for the wireless industry, MEA is the final stop for the wireless bandwagon.
The move by FT is considered risky, considering the unpredictable political climate in both Africa and the Middle East. Any gains for FT in the MEA region could be imperiled if another war or terrorist attack erupts.
However, this move could pay off in spades for the company as it is getting in on the ground floor of the MEA region at a time when most of the rest of the world is still focused on Asia and India.
In light of the close governmental ties between China and some African nations, laying the groundwork early in this region by France Telecom could provide a much-needed footing for European influence in the wireless communications market there.
iSuppli does not expect significant returns from any investments in the region for another five to seven years. But obtaining an early toehold may be a key for FT to become a significant player when the time comes for MEA to emerge as a player in the wireless communications market.
Posts
No comments: