Editorial: Developing countries gain mindshare
-Al Senia, Editor, America’s Network Magazine
Dec 18, 2006
americasnetwork.com
There were plenty of interesting news developments at the recent ITU Telecom World Summit in Hong Kong, but one of the most intriguing to me was also one of the most subtle: The emergence of the developing world as a significant market force.
Sure, there were plenty of new electronic devices to examine, numerous new technologies to evaluate and lots of deals being discussed among the major players in Asia, Europe and the Americas. But there was also an undercurrent of realization that emerging markets in Asia and Africa hold the key to future industry growth – and that major telecoms vendors should position themselves to embrace these markets, not ignore them.
In part, this is a reflection of market maturation: as developed markets become saturated, it only makes sense to search for new opportunities in the less-developed world. But it also reflects an interesting dose of realism. Many rural telecom markets in Africa and Latin America, for example, lack the legacy systems in place in Asia, Western Europe and the United States, so it’s actually easier to wipe the slate clean (there being no slate at all in some circumstances) and move forward with wireless installations and next-generation network development.
However, at ITU there also seemed to be a growing consensus among top industry executives that focusing on the needs of developing nations and markets doesn’t just make good business sense, but that it’s also a social responsibility. The notion that even the world’s most economically deprived citizens have a right to the education al and social benefits high-speed broadband can bring is a refreshing notion, and one that is not often expressed in free-market bastions like the US.
Cisco’s CEO John Chambers, for example, devoted part of his keynote address (as well as part of a follow-up press conference and part of his talk at a swanky evening cocktail party) to noting that business growth in 160 emerging markets is outpacing developed markets. Chambers added that his top priorities are bringing Cisco’s TelePresence solution (basically seamless, bug-free videoconferencing for corporations) into the mainstream and focusing on emerging markets, partly by investing in these markets.
“Corporate social responsibility and good business go hand-in-hand,” Chambers said, adding that companies need to do a better job of balancing their social responsibilities with their need to turn a profit. “I’ve always believed it’s the right thing to do,” he added.
It’s interesting and significant that an industry luminary like Chambers senses the shifting winds and is willing to focus attention and resources on the less-developed parts of the world. This might well be the beginning of a major and worthwhile trend, and it will be interesting to see if undeveloped countries with government leaders and service providers that “get it” will be able to use telecom to leapfrog their more affluent neighbors.
(Al Senia is editor of America’s Network.)
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