MWC 2020: Coronavirus overcomes Barcelona show

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MWC 0 – Coronavirus 1… The withdrawal of speakers following the epidemic from China forced the organizer to cancel the major world fair for mobile telephony, 10 days before the opening. A decision fraught with consequences.

Cancellations have multiplied for several days. The first blow of thrust had been given by LG, last February 4, when the South Korean giant had announced its withdrawal from the show planned in Barcelona from February 24 to 27. In less than 10 days, everything was packed, and after an emergency meeting organized on Wednesday, February 12, the ax fell: the MWC 2020 is canceled, the holding of the show being estimated as impossible.

The GSMA, company which organizes the annual raout, had no choice, constrained by all the disclaimers and by the application of the precautionary principle. We also feel, through the press release of the organization, that international pressure has been stronger than direct health reasons: “Given the safe and healthy environment of Barcelona and the host country today, the GSMA canceled MWC Barcelona 2020 because of global concern about the coronavirus epidemic, travel issues and other circumstances, prevent the GSMA from holding the event. ”

Many manufacturers have already announced that they will present their latest innovations by videoconference, or even organize other demonstrations later, like Oppo. The economic fallout of the show for the city of Barcelona and the Catalan region being significant, a strong shortfall is to be feared. Likewise, many small exhibitors will lose an opportunity to make a good part of their annual turnover.

A loss of 450 million euros for Barcelona

According to GSMA figures, there must have been some 750 operators and 2,000 companies from almost every country on the planet. Tens of thousands of people have therefore had their stay canceled. Beyond the displacement of conference announcements, which are in fact only the tip of the iceberg, there is the question of non-economic benefits.

According to newspaper information The world, for the city of Barcelona alone, the MWC brought in up to 450 million euros. Likewise, the organization of the show usually generates the trifle of 14,000 temporary jobs. For the exhibition center of the Catalan city, Fira, the MWC represents 40% of its annual figure, or 100 million euros.

But the host region is not the only one to be impacted. Behind the gold of the big stands, the Mobile World Congress was also an opportunity for small exhibitors to build their network and especially to sign the signing of contracts which could represent a good part of the turnover of the year. Hatem Oueslati, president and co-founder of IoTerop was one of them. Specialized in the security of smart health connected objects, this Montpellier start-up was counting on the MWC to make itself better known. “For us it is a lot of effort that falls into the water he laments. This will greatly slow down the taking of orders, we are trying to fall back on other nearby shows, hoping that they will not be canceled too. ”

If they cannot be reimbursed the sums invested upstream of the show, Mr. Oueslati's teams try to use their insurance to avoid large costs on the cancellation of accommodation.

Spanish authorities disassociate from GSMA decision

This question of reimbursement of costs is now at the heart of minds. As recalled Le Figaro, the stands cost € 1,000 per square meter, the entrance to the fair from 800 to 5,000 €. Because of the cancellation, the GSMA will have to get its hands on the wallet to reimburse exhibitors who have not yet announced their withdrawal.

According to the association, the best way to limit the costs would be for the Spanish government or the World Health Organization (WHO) to trigger a state of health emergency. This would ask insurance companies to take their share of the financial burden.

Except that the Spanish authorities have – for the moment – no health reason to do so, since only two cases of coronavirus have been detected on its territory (and again, in the Balearic Islands and the Canaries). In addition, the Catalan and Spanish authorities were against the cancellation of the show and decided to dissociate themselves from the GSMA's decision.

For Thomas Husson, analyst at Forrester, the GSMA should intensify its communication around the subject to limit misunderstandings. “The different brands have lost a big window of marketing fire and this will slow down the dynamics of the telecoms market for the start of the year. I have no doubts about the ability of large manufacturers to ascend the slope quickly enough, but this cancellation can have a lasting impact on small exhibitors. ”

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