On the lookout for new markets, it seems that IBM has set its eyes on a large piece of property that hasn’t quite developed yet. However, should IBM’s predictions go accordingly, it could be incredibly profitable. That property is Africa.
On Friday, it was announced that IBM would be handling the computing technology and services that power Bharti Airtel’s—an Indian telecommunication company—mobile communications network that spans across sixteen different African countries.
When the agreement is completed, IBM will manage IT infrastructure to support Bharti Airtel’s goal of supplying affordable mobile services to areas of Africa that haven’t been touched. IBM will also deploy Spoken Web which is a voice enabled Internet technology that allows for users to share information by talking over the telephone.
IBM and Bharti Airtel have been working together since 2004 when the South Asian mobile communications company chose IBM to run the IT and applications for its entire Indian network. That year, it had six million subscribers. This year, it has more than 150 million subscribers. The Indian company hopes that having IBM on board in Africa will allow them to replicate that success.
According to a study, only 40 out of every 100 Africans have a mobile phone. Demand, though, is growing at an average rate of 25 percent annually. It is believed that a 10 percent rise in mobile penetration could increase GDP by 1.2 per cent. In developing markets, that 1.2 per cent is much needed.
In a press release, IBM described this as “a move that will accelerate the transformation of African mobile communications and positively impact the speed of economic development across the African continent.”
Samuel J. Palmisano, Chairman, President and CEO of IBM said: “"By building a 21st century telecommunications infrastructure for the continent – in effect, treating all of Africa as a system of systems – we expect to help spark transformation not just in communications but across all sectors of society – empowering businesses, governments and individual citizens to connect, innovate and achieve economic growth."
While Africa is, as a whole, very small in the technology market today, analysts believe that it is ready for growth. Some analysts argue that what IBM is doing is getting in on the ground floor so that, when the explosion of growth happens, they are there ready to benefit from it.
It is expected that this growth will bring more jobs, more connectivity and a significant increase in mobile telecommunication to the region. And, it is anticipated that this will aid IBM in its goal to increase its revenue from growth markets from 19 per cent to 25 per cent by 2015.Sources......
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