The Mobile Internet Report Key Themes*

Key Theme #7 –
Mobile Internet Potential in Emerging Markets Should Not Be Underestimated
Regional outlook for mobile Internet impact on EM carriers –
China - expect 3G and mobile Internet to be key driver for VAS revenue growth. China
Mobile has advanced VAS platform, with mobile music, gaming, video, and the first
carrier-controlled application store. However, China Mobile’s less advanced 3G
technology (TD-SCDMA) has forced it to invest significantly in network infrastructure.
India - expect Bharti and Reliance Communications to win spectrum in upcoming
auction, owing to stronger balance sheets than new entrants. However, this could be a
winner’s curse, as ROI on spectrum and network investment could be low for several
years.
Other Emerging Asia – mobile broadband already taking off in Malaysia / Philippines;
Indonesia + Thailand have / planning to issue licenses. Given high literacy levels but
limited fixed broadband, mobile is expected to be the main “access” point for Internet.
Expect larger operators with balance sheet / spectrum / backhaul to benefit. These
include Telkom Indonesia, AIS, PLDT and Axiata.
E. Europe, Middle East and Africa – high mobile / low fixed-line penetration should
drive mobile to become the primary Internet access. Expected beneficiaries include
Safaricom and Mobily.
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