Ericsson sees telco battle in smartphone services

MANILA, Philippines - Mobile service providers in Southeast Asia, including the Philippines, are seen to come up with more innovations in services as smartphones and similar devices become more affordable and accessible, officials of telecommunications equipment provider Ericsson said.

Elie Hanna, president and country unit head of Ericsson Philippines and Pacific Islands said in a briefing that as smartphones and similar devices become affordable and within the reach of more consumers, mobile service providers should come up with new services to offer and cater to the varying needs of the market.

Smartphone penetration, he said, is what will drive growth in mobile data and services.

“Smartphone prices are going down very much but the trick is to get to the flex point where most of the population can afford it. That’s where you will see the real explosion and once you have explosion, then you have innovation because demand creates innovation,” he said.

He said that smartphones are now available in the market at $100, a price which he described to be unbelievable for such devices last year.

Kursten Leins, general manager for strategic marketing for Ericsson Australia and New Zealand, said in the same event that the highly dense population of countries in Southeast Asia also forces mobile service providers to keep on coming up with new services suitable for the needs of consumers.

“I think across Southeast Asia, a lot of operators has to deal with very high population in relatively dense areas so that actually causes innovation within those markets,” he said.

Hanna said that as more people use smartphones, mobile service providers are given more opportunities to offer new services.

In the Philippines in particular, he said mobile service providers have a lot of opportunities to innovate and grow their business since most consumers are open to new technology and services.

“It is regarded that Filipinos in general are not afraid to try and embrace new things and models. That’s what makes this market very interesting from that perspective,” he said.

The increase in smart devices and applications and recreating value for consumers were among the themes discussed in the recently concluded Mobile World Congress in Barcelona, Spain.

Hanna said that mobile service providers in the Philippines  in general are embracing trends in data explosion.