As the telecom industry continues to hurtle forward, with operators building out fiber, 3G and 4G networks at breakneck speed, the supply side of the equation when it comes to bandwidth is but one part of the picture. According to Pyramid Research, new and secure applications that benefit from capacity-intense service offers will help drive demand for broadband services. For channel partners, knowing how to stimulate demand is a key role to play based on the consultative nature of the business.
“Investment in infrastructure, licenses and spectrum are not the only elements that make broadband access and use a success,” explained Pyramid Research analyst Sonia Jorge, in a research note. “In fact, it is the level of demand for broadband connectivity and for broadband-based services and applications that will determine the speed of adoption of such services and the extent of their use.”
There are several factors at work when it comes to demand, including old standbys like income level, quality of service in the geographic area, availability of content (including localized and relevant content), quality and prices of devices, literacy rates, and cultural and social patterns. Jorge points out that amidst all of those variables, it’s been shown time and time again that targeted, relevant applications and solutions to meet specific needs are the winners. It all comes down to personalization and relevancy—a truth that applies not just in the consumer market, but also for businesses.
“Demand stimulation strategies generally include robust ICT awareness and education campaigns, policies focused on affordable prices for services and devices, and a number of efforts to promote demand for and use of ICT services (e.g., targeted marketing campaigns and offers, localized services and content, e-government services, and availability of multiple devices with different capabilities and at different price levels),” explained Jorge. “Taken together and in isolation, these strategies contribute to the development and growth of the sector.”
For channel partners, knowing their markets and relevant applications, especially in verticals like agriculture, health, education, SME management, finance and banking, among other sectors, can have a big impact on their ability to expand their revenue opportunities. An eye towards economic development based on communications infrastructure is a time-worn idea, borne out in broadband stimulus efforts and rural development policy, but having the pipes in the ground is only the tip of the iceberg.
“As innovation in ICT continues to increase, we can only imagine the multiple externalities and opportunities that can arrive from it,” Jorge said.
