This week's Mobile World Congress in Barcelona has seen
the International Telecommunication Union (ITU) launch a report
into the "harsh realities" the mobile industry faces.
The report,
Confronting the Crisis: Its Impact on the ICT Industry
considers how the industry can position itself for recovery in the
future.
The report draws on analysis from industry experts and
international institutions. As the established order is overturned,
it says convergence in the ICT industry will accelerate, with the
emergence of new players with new business models.
Firms' ability to weather the economic storm will depend on
their ability to invest for the future and explore new
opportunities to benefit from the eventual upturn.
For an industry founded on innovation, the current turmoil will
create openings for nascent ICT companies, says the report.
Confronting the Crisis finds that although credit is now less
abundant and more expensive, with financing costs for operators on
average 3% to 4% higher year-on-year, savvy operators can take
advantage of the economic turmoil to reposition their services for
the upturn.
Funding is still available for players with sound business
models, established demand and early projected cash flows. But
alternative sources of financing are needed, with a growing role
for government financing and economic stimulus packages, says the
report
"Despite difficult times, there are reasons to be optimistic,"
said ITU secretary general Hamadoun Touré.
"Having contributed consistently as a high-growth sector in its
own right, ICT can now power economic recovery across all sectors.
Along with stimulus packages put together by governments, the ICT
industry must continue to invest in infrastructure and the roll-
out of cost-effective services, such as next-generation
networks."
Touré said innovation was the key to recovery.