Commentary

Not Smartphones, But Much In Demand

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With all the focus on smartphones lately, it's easy to forget many people around the world don't have access to basic mobile services. A new report from ABI points out that underserved markets in Asia, Africa, Latin America have great potential but also present formidable barriers. Low disposable income is among the most immediate.

That need creates a market for low cost and ultra-low cost (ULCH) handsets, which ABI expects will together grow at a compound annual rate of 24% over the next five years. The report says the GSM Association has pegged the top desirable ULCH handset price at $25 through next year and at $20 for 2011-2012. Mobile phones are rarely subsidized in emerging markets.

Mobile services in developing countries are also basic, usually limited to voice and SMS text. To that end, Google last month announced a variety of SMS services for the African market, starting with Uganda. Google SMS is a suite of mobile apps providing access via SMS to information on topics including health and agriculture tips, news, local weather, sports, and more.

It also includes Google Trader, an SMS-based marketplace allows users to sell anything from used cars and mobile phones to crops and livestock. Certainly, Google recognizes Africa represents a vast potential market for its services. The company pointed out in its announcement that Africa has the world's highest mobile growth rate and that mobile phone penetration is six times that of the Internet there.

With its focus on the mobile phone in Africa, perhaps one of Google's later steps will be partnering with a manufacturer like Nokia to sell a low-cost Android phone for the continent. After all, its mission is to organize the world's information and make it universally accessible and useful.

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