Emerging Markets As Cutting Edge Tech Test Beds

Om Malik, Sunday, December 2, 2007 at 9:45 AM PT Comments (5)

A while ago, I had pointed out that the epicenter of the tech world had moved somewhere in the middle of South China Sea. The point was that most of the new innovations - Fiber, Ethernet 2.0 and Mobile - were being deployed first in Asia and other rapid-growth economies, mostly because of lack of legacy. The latest example is Boston-based software-defined radio start-up Vanu Inc., is working with IBM and using virtualization to lower the costs of network operations and increase spectral efficiency.

“Emerging markets are becoming like incubators,” said Shiv Bakhshi, director of mobility research at IDC. “You incubate the idea there, get proof of concept. . . . Then you bring it home to the bigger markets . . . there are too many people here with too many interests to let any innovation go through to disrupt the market.”

For global carriers like Vodafone, T-Mobile and AT&T, these experiments have major ramifications - they can help them eek out some profits from their wireless voice business, and at the same time improve call quality.

Are we going to see more such-try-there-apply-here experiments in coming years? Of course. I think the big question is when the local entrepreneurs start thinking about innovating for their local markets along with harboring global ambitions. Chinese vendors, Huawei and ZTE are two examples of companies with global ambitions. In India there are some interesting fixed wireless start-ups that are gaining traction, not just locally but overseas in markets such as France.

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3 trackbacks so far

December 3rd, 2007
12:21 AM PT

[...] GigaOM skriver om hur teknologiföretag lanserar nya tekniker först i Asien som testmarknad innan de lanseras i resten av världen. En fördel med Asien att de inte har gammal “legacy teknik” som ligger som hinder för ny teknik. Läs hela artikeln här [...]

December 3rd, 2007
10:26 AM PT

[...] Om Malik has this short item about rolling out tech in the developing world to test and learn before rolling it out in the higher-stakes markets of the more-highly-industrialized world. Emerging Markets As Cutting Edge Tech Test Beds [...]

December 4th, 2007
3:49 AM PT

[...] their WiMAX base station in MoMo, are going great guns. Their great work is sure getting noticed! Here’s wishing them a very successful [...]

2 comments so far

December 4th, 2007
9:08 AM PT
Dimitrios said:

Aparently this testing in smaller markets is a widespread phenomenon in Europe where the market is fragmented and risky due to wildly varying tastes and language barriers. Vodafone has typically tested many new services in Greece where the population is small and introduction was cheaper. Lots of those services have been quite succesful.

December 10th, 2007
12:32 AM PT

Om..,
I tink the situation is gonna change.. It may come to the shores of arabian sea :D with underwater OFC cables, better connectiviy, etc.. India will be the hot tech destination of tommorrow. now all what we have to do is to count the cities in India, which are capable of an expansion, an expansion beyond the limits.!

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