iPhone
Devices like the iPhone will not become prevalent in the developing world for some time

Mobile web will split in two

Technology gap with developing world will lead to extra complexity for business

Written by Neon Kelly

Businesses may be forced to deal with two separate tiers of mobile internet, as the technology gap between developing and developed countries grows.

In many parts of the world, mobile phones are providing people with their primary means of accessing the internet, side-stepping the prohibitive cost of computers and supporting infrastructure. These users represent an untapped but potentially large source of revenue.

But while devices such as Apple’s iPhone are now finally offering an internet experience that parallels the desktop world, the networks and phones of developing countries are set at a much lower level. This discrepancy is due to continue for some time, said Ann Mei Chang, engineering site director at Google.

“I think there will be a two-tier system for a long time,” said Chang. “Say, 50 years from now, we will be at a higher level which the iPhone has set. We expect there to be multiple tiers, and we are trying to address that with different products.”

While it will not ignore low-end users, the search giant is focused on delivering high-speed search tools and other web-based applications to the upper end of the market.

A company of Google’s size can afford to cater to multiple tiers, but many businesses will be forced to choose, said KF Lai, chief executive of Singapore-based
mobile communities company BuzzCity.

“It will be very difficult for one company to handle both tiers, because the skills required are quite different,” he said. “Most will instinctively go for tier one, because the users have higher earning powers.”

BuzzCity’s social network, myGamma, targets developing markets such as Kenya, Nigeria and South Africa, generating revenue through product advertising.

“Even in a relatively developed country such as Thailand, outside of Bangkok there are users who can only be reached by TV. Mobile phones provide an interactive way to reach these users,” said Lai.

There are specific hurdles with working in developing markets ­ one being a lack of online payment systems. Many of myGamma’s users do not have credit cards or even bank accounts, but advertisers aim to deduct phone credit from a customer’s pre-pay account instead.

For many suppliers, the deep pockets of users in the developed world will remain the most appealing targets.

But Ian Chard, analyst at Juniper Research, said it would be wise to at least consider developing countries.

“If you reach hundreds and thousands of subscribers, each spending 10 cents, you could be looking at a large spend,” he said.

  • Have your say
  • Send to a friend
  • Print this
  • Share

reader comments

related articles

Mobile device in useCommunications

Mobile Web 2.0 to be worth £11.5bn by 2013

Social networks and user-generated content will fuel the sector's growth 14 May 2008

 

Google and Microsoft to fuel mobile innovation

The arrival of the giants will open up the sector to Web 2.0 style services 23 Apr 2008

Mobile momentum

Linda More reports on the advances that have taken place in mobile technologies in the past few years ­ and the changes likely to occur in the future 06 Sep 2007

Games embraces the new web

Media sharing technology could help turn a problem into an opportunity, says London committee 09 Aug 2007

Top 10 articles, 29 Jan 2010

Apple's latest creation, the iPad, dominates the headlines 29 Jan 2010

related white papers

today's top stories

Apple overhauls iPod Shuffle, Nano and Touch

New models come with iTunes update and social networking tool 02 Sep 2010

Scottish school shifts wholly to the iPad

Head of computing and IT at Cedars School gives the rationale behind his decision 01 Sep 2010

Salford's MediaCity pushes technology boundaries

In preperation for 3D, ultra HD and a tapeless workflow 02 Sep 2010

Google adds Priority Inbox to combat information overload

Gmail feature will "revolutionise the way we use email" 31 Aug 2010

Cost of Windows 7 migration will rise due to lack of skilled staff

As the deadline for moving to Windows 7 approaches, businesses will have to dig deep to keep their operating systems up-to-date 27 Aug 2010

Advertisement

Power and cooling management for the data centre
The principles for achieving power and cooling capacity management in the modern data centre

The value of virtual infrastructures to business continuity
This IDC paper examines the role of server and storage virtualisation in enabling application and data continuity at a lower overall cost

Advertisement

Citrix

Keep up to date with the latest products, services and technologies from the world's leading IT companies; IThound.com brings you thousands of white papers, case studies and analyst reports.

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

More available - click 'submit' to view

Existing User

Newsletter user login:

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

Latest poll

How open are you to mobile banking via a smartphone?

How open are you to mobile banking via a smartphone?

In what capacity would you use your smartphone for mobile banking?

View poll results

Latest audio and video articles

A microphoneAudio

Computing Podcast: Tech Talk episode 5

Join Tech Talk for an overview of the week's top IT stories, and a debate on IT self-service. Will it provide value? 27 Aug 2010

A microphoneAudio

Computing podcast: Tech Talk episode 4

Join Tech Talk for an overview of the week's top IT stories, and a debate on IT skills. Is the UK slipping behind? 20 Aug 2010

Latest in-depth articles

picture of a TV studioAnalysis

Salford's MediaCity pushes technology boundaries

In preperation for 3D, ultra HD and a tapeless workflow 02 Sep 2010

Second Life avatarAnalysis

What are the business benefits of virtual worlds?

Experts cite collaboration and brainstorming, recruitment and training 26 Aug 2010

Primary Navigation