Telecoms Innovation is As Strong As Ever During the Global Economic Downturn

A new survey, released today by the GSM Association has revealed that an overwhelming majority of global mobile network operators, investors and technology vendors believe that the current economic malaise is actually driving innovation in the telecoms industry.

The industry study, which surveyed the opinions of 200 senior executives working at MNOs, venture capitalists and telco tech providers around the globe, revealed nearly 70 per cent of respondents believe that the increased need to prove a business case for new products and services during a downturn helps rather than hinders innovation.

Furthermore 80 per cent of the industry strongly believe that maintaining levels of spend on research and development (R&D) is vital if mobile network operators are to benefit from the growth potential of new and innovative services.

The convergence of GSM and CDMA carriers under the LTE standard is set to provide developers with an environment that helps take innovation to the next level said 80 per cent of respondents.

Whilst many industry experts cite that innovation is coming primarily from emerging markets like India and China, the new study suggests that cellular powerhouses of North America and the Far East will continue to flourish. Indeed, 45 per cent of respondents suggested that the most innovative projects will come from high growth, emerging markets, such as India and China, 55 per cent believed that established markets would continue to innovate.

“It was back in the summer of 2007 that the world’s media started talking and writing about an impending 'credit crunch'. The effects have been dramatic and far-reaching. There is, however, one group that thrives during times of hardship: Innovators,” said Bill Gajda, Chief Commercial Officer at the GSMA. “Necessity, it seems, really is the mother of invention.”

“When a crisis hits the economy people are naturally more cautious about where their money goes; in our business (mobile advertising), advertisers wants to have an increased visibility on where their money is going, i.e. who sees their ads, and therefore this opens innovation opportunities for us and a greater chance to prove them than online/mobile tools offer unique way to target and measure ad campaign results,” said one respondent echoing the views of many.

Posted to the site on 4th June 2009