|
|
 |
Return to Press Releases
View Archived
Cambridge, Massachusetts - April 13, 2011 - The number of gray market handsets sold across AME will remain steady through 2015, however the sharp increase in legitimate handset sales during that period will reduce the percentage of gray market handset units sold in AME to 13 percent, according to a new report from Pyramid Research (www.pyr.com).
Squashing Gray Markets for Mobile Handsets describes the reasons behind the emergence of gray markets in the African handset markets and addresses some initiatives by handset manufacturers, network operators and government agencies to counteract these trends. It observes that concerted efforts are necessary if gray markets are to be challenged and provides examples from Turkey, Nigeria and South Africa to illustrate the arguments in more detail.
Download an excerpt of this report here.
Purchase the report here.
“Pyramid believes that shrinking gray markets in Africa depends on manufacturers and operators providing the right incentives for end users to buy authentic handsets, rather than solely branding gray markets as illegitimate,” says Kerem Arsal, Analyst at Pyramid. “This requires handset manufacturers to work with network operators to develop affordable handsets, while government agencies should implement policies to encourage the sale and domestic distribution of legitimate handsets,” he indicates.
Many African end users can afford only the cheapest of handsets. “Even in cases where income is not an immediate obstacle, limited mobile network capabilities in most markets suggest that phones that are rich in features are not urgently needed,” says Arsal. “In response to the gray market handsets, handset manufacturers are aiming for clever combinations to appeal to end users by providing affordable and simple phones, while staying more in touch with the usage realities of the African markets when coming up with relevant features,” he adds.
“In African markets where mobile operators have a degree of subscriber loyalty, they should be employed as the primary channel for handset distribution,” Arsal says. “Where mobile operators achieve some degree of loyalty, then handset manufacturers are better off using network operators’ channels at the expense of sharing some revenue,” he notes. “In fact, any loss of revenue due to selling indirectly can easily be counteracted by the scale and certainty provided by powerful mobile operators, as well as by recovering the loss of market share to gray markets,” Arsal adds.
Squashing Gray Markets for Mobile Handsets is part of Pyramid Research's Telecom Insider Report Series and is priced at $595. Download the excerpt here. It can be purchased online here or by emailing us at info@pyr.com.
###
About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries - a distinction that has remained unmatched for more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry's most comprehensive market data, trusted research and insightful technology analysis.
About Light Reading (www.lightreading.com)
Founded in 2000, the Light Reading Communications Network is the world's leading research-led integrated media company serving the global communications market. Lightreading.com is the ultimate source for technological and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, and TelcoTV Asia, Ethernet Expo New York and Ethernet Europe, and The Tower Summit @ CTIA, as well as focused one-day events tailored for cable, mobile, and wireline executives in the US, Europe, India, and China. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.
About UBM TechWeb
UBM TechWeb (http://www.ubmtechweb.com/), the global leader in technology media and business information, enables people and organizations to harness the transformative power of technology. Through its core businesses - media solutions, marketing services, and professional information - UBM TechWeb produces the most respected and consumed brands, applications, and services in the technology market. More than 14.5 million business and technology professionals (CIOs, IT and IT Support managers, Web and digital professionals, software and game developers, government decision makers, telecom providers and business executives) actively participate in UBM TechWeb’s communities. UBM TechWeb brands include: global face-to-face events such as Interop, Game Developers Conference (GDC), Web 2.0, Black Hat, and VoiceCon; large-scale online networks such as InformationWeek, Light Reading, and Gamasutra; research, training, and certification services, including HDI, Pyramid Research, and InformationWeek Analytics; and market-leading magazines such as InformationWeek and Wall Street & Technology. UBM TechWeb is part of UBM, a global provider of media and information services for professional B2B communities and markets.
Press Contact:
Jennifer Baker
Pyramid Research
+1 617-871-1910
Return to Press Releases
View Archived
|
