01 July 2011
Rise of the Caribbean Mobile Market
The wave of smart phones flooding regional markets presents exciting prospects both for operators and consumers. The time is now and the window is open for the Caribbean to position itself to take advantage of this new mobile revolution.
It is no secret that in the Caribbean people are crazy about their cell phones. In fact, the Caribbean has one of the highest levels of mobile phone penetration in the world.
According to a report from BuddeComm, an Australia-based telecom research firm, mobile phone penetration in Latin America and the Caribbean reached an estimated 80% in early 2009, well above the world average which was about 58%. The report stated that Latin America and the Caribbean together now account for an estimated 12% of the world's 3.97 billion mobile subscribers.
But there is something even more distinctive in the Caribbean's mobile landscape. In the past few years we have witnessed the meteoric rise in popularity of smart phones such as RIM's Blackberry devices, the Apple iPhone and, most recently, a plethora of mobile devices running the Google-developed Android operating system. These smartphones are multifunctional gadgets that now allow us to do much more than make calls. They enable us to fit into our pockets the functionality we once expected only from personal computers and laptops. They allow users to check email, surf the web, listen to live radio, play music, update social networking accounts like Facebook and Twitter, check bank balances and much more.
Smarter Phones, Smarter Apps
Perhaps one of the most significant developments that attended the rise of the smartphone, is the evolution of the mobile app. Mobile apps are software programs specially designed to run on mobile phones. According to the latest data from Nielsen, a US research firm, mobile apps are popular even among users who are still using lower end "feature phones". Without a doubt, mobile apps represent the next wave of the mobile revolution.
Exponential Growth
The mobile app market has experienced explosive growth globally. Business large and small are now joining the rush to stake their brand-claim on the mobile landscape in the form of an app. The usual suspects among global Internet companies are already taking advantage, providing apps that are tailored for the rapidly growing range of mobile devices. For example, Facebook sat in the number one spot for all smart phone varieties except for Android OS, where it took second place after Google Maps. Music-related apps, News apps and Games are also very popular.
How do consumers access all these apps? The answer depends on the mobile platform running on your device. Vendors have all come up with different names for their mobile app repositories. If you're using a BlackBerry, you'll download your apps from the BlackBerry App World. Apple has the App Store; Nokia, the Ovi Store; Microsoft, the Marketplace and Google, the Android Market.
According to Distimo, an app store analytics company, Apple grew the most in 2010 in terms of the absolute number of applications in the United States. The Apple App Store for iPhone doubled the total number of apps in its catalog during the past year to almost 300,000. The total number of apps available for Google Android Market today is 130,000, which is 6 times the number of applications available one year ago. BlackBerry App World and Nokia Ovi Store showed triple digit growth in 2010, to nearly 18,000 applications and 25,000 applications, respectively. Microsoft Windows Phone 7 entered the party late and now has just over 5000 apps available.
New Era, Caribbean Opportunity
What does all of this spell for the Caribbean region? In a word, OPPORTUNITY! In a region that is world renowned for its creativity and with one of the highest levels per capita of smart phones on the planet, the mobile revolution presents a tremendous opportunity for the development of Caribbean apps. Products and services tailored for Caribbean society, Caribbean interests and Caribbean needs. Caribbean entrepreneurs, governments, businesses and organizations can lead the way by optimizing their information and service delivery capacity to take advantage of the power in the hands of citizens and consumers.
Still, seizing the opportunity will neither be cheap nor straightforward. For mobile operators in the Caribbean such as Cable & Wireless (LIME), Digicel, CLARO, and Telecommunications Services of Trinidad & Tobago (TSTT), shifting consumer appetite from SMS and BBM services to always-on data plans will require strategic investment in infrastructure, new value-added services and consumer awareness initiatives. Most mobile in the networks in the Caribbean still run the old GPRS/EDGE technology. This makes it difficult for consumers to experience or appreciate the full value of the mobile web, particular on the higher-end handsets which support web-based apps as well as audio and video streaming. In the Jamaica market the three major providers now all support 3G. However providers are yet to provide firm timetables for rolling out 3G and 4G technologies in the other markets in the region.
Another challenge is expected to be changing consumer behavior in a region dominated by pre-paid users. Since the liberalization of mobile market in the Caribbean about a decade ago, competition has been so intense that operators there have seen a steady decline in average revenue per user (ARPU). Operators are making less profit while compelled to provide new services to growing numbers of subscribers with increasingly sophisticated needs. Price pressures, combined with a demand by consumers to do more than just talk and text on their phones, is forcing carriers to place more focus on value-added service (VAS) offerings. This is where the proliferation of mobile apps, designed specifically for regional markets can play a major role.
The wave of smart phones flooding regional markets presents exciting prospects both for operators and consumers. Both constituents now have the option to look to a range of apps tailored to regional audiences and tuned to regional networks. These apps can deliver services such as, mobile Internet, music, video, games, info services and transactions for which carriers can charge extra. The indigenous capacity to support this is already in place and the region already has the proven capacity to develop apps that service global needs. Antigua once had a strong gaming software development industry (until US-initiated WTO dispute over cross-border remote gambling killed it off) and Barbados was once a hub for Y2K programming services. Trinidad and Jamaica also have a solid history of indigenous software development. Of course there are also legions of independent software developers scattered across the region. Together, these represent the foundation for a potentially significant Caribbean mobile application development industry. What is now needed is the awareness, the encouragement and the incentive to actively begin building the Caribbean mobile marketplace.
The time is now and the window is open for the Caribbean to position itself to take advantage of this new mobile revolution.
This extract from a Paper by Bevil Wooding on the topic "Developing Indigenous Content — The Global Internet Through A Local Lens” was first published on Bevil Wooding’s Circle ID blog. Bevil Wooding is a member of the Executive Core of Congress WBN, an Internet Strategist and the Caribbean Outreach Manager for Packet Clearing House. He works closely with organizations in the public and private sector to leverage the power of ICTs and is a strong advocate in developing countries for the adoption of Internet and internet-based technologies as a tool for corporate, economic and social transformation.
Comments (11)
Indeed the time is right for the Caribbean to seize the opportunity and take advantage of this new mobile revolution, it requires the mobile companies to build a sound, sustainable ethical foundation in providing professional services, with a global vision at competitive rates. I truly believe the citizens of the Caribbean will welcome a paradigm shift from the international mobile providers, once a high level of service is guaranteed.
Initially, it was cheaper for Caribbean users of mobile units to own and operate them. Bigger nations placed restrictions such as users were charged for receiving calls. The vendors made it easier for us. We are also a people who entertain differently. Our phones are used for music,games and communicating for much less than business reasons. This is my attempt to explain the exponential growth.
Initially, it was cheaper for Caribbean users of mobile units to own and operate them. Bigger nations placed restrictions such as users were charged for receiving calls. The vendors made it easier for us. We are also a people who entertain differently. Our phones are used for music,games and communicating for much less than business reasons. This is my attempt to explain the exponential growth.
There is indeed a raise of the Caribbean mobile market and I agree with the writer that the Caribbean software market should grasp this opportunity. I am a user of Blackberry and I personally think that there is not a verity of good apps on the Blackberry App World and maybe the Caribbean market could produce better, interesting apps. I also think that if one of the Caribbean software companies takes the lead/first step into producing such apps, it will create a domino effect causing other software companies to follow.
The rise of the regional mobile market is one that brings a lot opportunity for the region at every level, government, business and the citizen. The article stated that the mobile phone market penetration was high as compared to the rest of the world and this auger well for retail handset peddlers and the network and internet service providers. The benefits to society are many. Improved connectivity with family and friends, enhanced ability to share information, new business opportunities for those in the information technology and mobile hardware and software businesses and an increase in productivity of regional and local businesses.
The article addressed the need for us as the Caribbean region to increase local and regional content on mobile devices and to develop and monetize indigenous mobile software applications and services. The population of the Caribbean is approximately forty million people. Out of that forty million people, the Caricom countries barely accounts for five million people, with Jamaica and Trinidad and Tobago accounting for about four million out of that. Cuba, Haiti, Puerto Rico and Dominican Republic collectively accounts for almost thirty-five million people, all of whom are non english speakers. The theme of regional indigenous software development should be, “bridging the gap". The number one goal of the Caribbean region with respect to indigenous mobile software applications and content should be to bring about Caribbean integration. Only through integration, we will increase the economy of scale and reduce the price points of mobile and other forms of goods and services offered to each costumer and still maintain profitability. Regional integration can only foster strength among its citizens, strength of purpose and will to unite. There are many opportunities to come about through the modernization of our society through local mobile content and app development.
There are only challenges ahead for the local and regional network providers however. Applications like, "Whatsapp" which offer free one year service packages for texting and file sharing to any mobile phone in the world is a case in point. "Viber" is another application which offers free calls from mobile to mobile from any phone in the world via "Voice Over Internet Protocol" and others like it are increasing competitiveness for local network providers, thus further reducing the profits obtained per costumer. Similar to this is "Skype" which is moving away from the computer screen and onto the screens of mobile phones with a mobile application available at the I store for I phone users. If regional network providers want to remain relevant, they have to work at lightning speed to develop services which are tailor made for regional costumers and offer regional calling packages to maintain and increase market share or be soon priced out of the market by these texting and calling applications. Internet service providers will definitely have a more integral role to play in the future of data transfer and information sharing. New competition is likely to be on the market soon. The two winners in technology are the most innovative companies and the consumers.
The Caribbean is has a major opportunity to enhance itself as they have the ability and expertise to develop a mobile application industry. Once they can grasp that opportunity and put a lot of effort into it they will reign successful, as people of the Caribbean are always using their mobile phones and are readily interested in new apps as there is definitely the need for it.
It isn’t going to be an easy task because of the competition between all leading companies but once their services are of good quality and their apps are interesting then they will gain their customer trust and start a steady foundation.
The emergence of these apps do possess an opportunity for the Caribbean. It's a wonder software developers in the region haven't designed apps to market our countries to the rest of the world as yet. I'm a windows phone user, and i am aware that the amount of apps available on the WP marketplace is nowhere close to the amounts on both the android and iOS marketplaces, so I am not sure if this already exists on these other platforms, if it does, it should be ported onto all other platforms, otherwise, it should be developed. Someone could design an app with the schedules for upcoming events in the various islands in the region, eg fetes in Trinidad around the Carnival season. In my opinion, that's a great way to keep tourists interested so they wouldn't have to spend time wondering what else there is to do if they decide to spend their vacation on one of these islands other than visit beaches and places of interest.
Almost everyone, if not everyone has access to at least one of these smartphone platforms, whether directly or indirectly. We should take advantage of that fact to make our islands more tourist friendly.
I fully agree, with three major platforms on which to design; is Android, iOS and Windows there are countless option once creativity is used.
In a globally connected world, I defiinitely agree that now is the time for the Caribbean to seize such an OPPORTUNITY to facilitate ease of communication. Despite the monetary aspects needed to persue this venture, we have to consider the issue of sustainable development and I am definitely in favour of the mobile revolution.
i think its good news that there is a rise in mobile in the Caribbean it goes to show that we are also developing as the world develops too. This is a great opportunity for the economy because business men can now invest more into mobile phones and develop the net working systems . The leaders should also look at this as being a great opportunity to invest more into developing networking schools in the Caribbean and instead of importing phones they can have there own company in the Caribbean.
I think it’s good news that there is a rise in mobile in the Caribbean it goes to show that we are also developing as the world develops too. This is a great opportunity for the economy because business men can now invest more into mobile phones and develop the net working systems. The leaders should also look at this as being a great opportunity to invest more into developing networking schools in the Caribbean and instead of importing phones they can have their own company in the Caribbean.