Emerging Markets and new Telecommunications companies

The telecommunication industry was previously dominated by a few, extremely influential companies which not only controlled the market but also the technology. However, with the rise of China, India and many other emerging economies the telecommunication industry landscape has began to change.

A great example of this is China Mobile which is directly controlled by the Chinese government. China Mobile which controls 70% market share in China also has a network that covers 97% of China. A telecommunication company that has 70% market share and 97% network coverage in the world's most populated and fastest economically developing country is indeed going to change the investment and technology development scenario in the industry. In 2007 China mobile purchased Paktel of Pakistan and announced its future plans involve the purchasing and investment of foreign companies.

Another great example of telecommunication companies in emerging markets is MICC (Millicom International Cellular). MICC has networks that cover 20 countries in 3 continents (Africa, South America, Central America). MICC has brought a new way of business to the telecommunication industry as it charges per second and not per minute; the main reason behind this being that most of its customers come from the poorest areas in the world. MICC strategy to charge seconds and not minutes has given the company a competitive advantage compared to other established carriers which prove to be too expensive for low income populations.

With the ongoing development of telecommunication companies in potentially lucrative emerging markets, it will be interesting to see in the near future how established companies in the industry will cooperate or clash with the newcomers.