Friday, November 18, 2005

Pyramid Research: Emerging Markets Want Mobile Data But May Not Want to Pay

Pyramid Research has issued a new study that finds "among wireless subscribers across the BRIC countries (Brazil, Russia, India, China)," Brazilians were the most interested in using wireless data services. The survey of 2500 mobile phone users asked "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."

The study found that "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." To put the potential market opportunity in better perspective, Pyramid cited that:

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 at Pyramid Research said “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.”