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Developing nations desire high-end phones 
A new study shows significant demand for high-end mobile phones in developing countries, contradicting the belief that low-cost, bare-bone phones are the only handsets that will sell in high-growth markets.

The CMO Council recently released a study of nearly 15,000 consumers in 37 countries. The audit reveals that consumers in developing countries are the new power users of wireless technology and report the highest levels of device dependency and greatest receptivity to the latest mobile applications and services.

"There is a significant opportunity for more advanced phones and definitely for more advanced services and applications in developing countries," says Dave Murray, director of the CMO Council's Forum to Advance the Mobile Experience. "Device makers and service providers need to recognize there's a huge opportunity for advanced services and multifunctional devices in developing markets."

There is a new generation of mobile technology power user in developing nations. They surpassed users in the most developed countries in every mobile use category.

Of the survey respondents, 73 percent in Latin America, 69 percent in eastern European countries and 63 percent in Asia considered themselves to be technically savvy with their mobile devices. This overshadows the 58 percent of respondents in western European countries and 50 percent in the US who felt the same way.

"The power users seemed to be in emerging markets. Asia and eastern Europe (consumers) are ahead in their intent to use mobile services such as mobile video, e-mail and banking," Murray says. "There is also a strong interest in buying more-advanced handsets, contrary to advice only bare-bone phones are needed for developing regions.

"That said, price is a big, big issue in developing countries. You've got to get the pricing right in developing markets."

The study shows that price was very important in all countries. There was a high degree of sensitivity for service fees, roaming charges and hidden costs.

The desire for mobile services may be attributed to necessity due to the otherwise poor infrastructure in those areas.

"Wireless is sometimes the only available source. For example, in India, where they don't have the huge ATM (automatic teller machine) system, they are very interested in mobile banking. The mobile phone becomes a default platform for a whole variety of mobile applications like banking and commerce. Adoption and implementation is taking off more rapidly in developing regions," Murray says.

Although purchasing power in these regions is significantly lower, developing nations don't consist solely of poor communities. There is an emerging class of people earning higher wages with an interest in, and need for, mobile services.

Combined with a willingness to pay for a wide range of mobile content and service offerings "there are huge opportunities in both established and emerging markets to extend the value and appeal of mobile devices and services," Murray says.

About the Global Mobile Mindset Audit
The CMO Council's Global Mobile Mindset Audit surveys nearly 15,000 mobile technology users in 37 countries in the Americas, Europe, the Asia Pacific region and Africa. An executive summary of the study, is available for download from CMO Council website.

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