Telecommunications company Vodafone reports an unexpectedly high growth in its subscriber base in the last quarter of 2005, and attributes this to strong growth in its business in emerging markets, as well as third-generation (3G) mobile phone sales. 7.1 million new subscribers were added in that quarter alone, bringing up the total Vodafone client base to 179.3 million worldwide.
Intense competition in the German, Italian, and British markets, though, caused a lower rate of growth in these particular markets, and the increase in subscriber base was lower than expected. However, this was more than offset by robust business in Romania, South Africa and Egypt, all emerging markets.
The statements by Vodafone seem supportive of the recent trend in big companies’ focusing on emerging markets as a viable source of business. Vodafone, itself, has in fact recently acquired Turkish mobile provider Telsim.
Company formation and business solutions experts believe this is a good opportunity for up-and-coming startups to engage in business with the emerging markets, where the growth and revenue potential is strong.