Huawei 2008 Annual Report Download - page 18

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Emerging Markets
How to accommodate one billion new users in face of
deteriorating APRU?
Over one billion new users will be added to mobile networks in emerging markets
over the next few years. This will help bridge the digital divide while boosting
local economic development.
This growth will come from emerging markets, but it is expected that the average
revenue per user (ARPU) in those markets will be around USD5 or even lower.
Meeting the challenges of user growth, while being profitable and achieving
sustainable growth at low ARPU rates will be critical to future success of operators.
Huawei Solution
-
Head start market advantages
through innovative solutions
and services
Problems with basic infrastructure, engineering, power supply, and transmission
account for a large proportion of the construction cost in emerging markets. To
address this issue, Huawei has been creating innovative approaches to high-
power coverage, solar and wind power supplies, traffic-based power controls,
natural heat dissipation and affordable handsets. These innovations expand
network coverage, reduce transmission resources, and increase energy efciency,
thus lowering TCO signicantly.
The limited disposable income of subscribers in emerging markets means that
communications has to create value to attract new users. Huawei works with
operators to create more value from mobile services, thus attracting more users
while improving revenue. An example can be found in Bangladesh, where
Huawei assisted the operator to not just construct the mobile network, but also
add value by creating services such as publishing farm produce information
-
a
development that opens a communication channel between local growers and
final buyers, and increases producers' income through price transparency and
reduced procedures.
Moreover, our services teams understand our customers' needs, and rapidly deploy
networks while providing customers with professional services, such as network
technology services and managed services, thus help them seize new business
opportunities in emerging markets.
EMERGING MARKETS15