Mobile Broadband Will Be a Strategic Disruptor in 2012, says Ovum

 Driven by demand for mobile broadband, market research firm Ovum said that the emerging market operators will continue to experience strong connections growth in 2012. Besides being the main driver of this growth, mobile broadband will also act as a strategic disruptor, according to recent finding by the research firm.

In a new report generated by the independent telecoms analyst firm, the emerging market operators will continue to see double digit mobile connections growth in 2012. Large markets with relatively low mobile penetration, such as China, India and Indonesia, will be the key drivers of this growth, says the report.

In a statement, Angel Dobardziev, Ovum Telecoms’ emerging markets practice leader and co-author of the report, stated, “Many emerging market operators went through a transitional period in 2011. Operators had to continue adjusting to slower mobile connections growth, tougher competition, more regulation and lower prices and margins. While many emerging markets are still expected to experience double-digit connections growth in 2012, few will report double-digit revenue growth.”

However, the Ovum report shows that revenue growth, margins and return on investment will be far more important metrics than connections growth in 2012 as connections and average revenue per user (ARPU) are becoming increasingly irrelevant due to the growing prevalence of multiple SIM ownership in most markets.

According to the report, mobile broadband growth will be the biggest opportunity for emerging market operators in 2012. Ovum forecasts that operators across all emerging markets will experience strong data connection and revenue growth in 2012 as users look to gain access to data services, the Internet and mobile content and applications.

Further adding to his comments, Dobardziev said, “Emerging market operators will look to expand their 3G network coverage and capacity to cater to the increasing demand for data services. Many operators will also start to evaluate and plan for the acquisition of spectrum for LTE services in 2012, while a select few will launch LTE networks. The increase in capacity that the deployment of 4G services will enable will cause a number of disruptions and shifts in the industry.”