That's not the problem. Distribution of content, music, videos have to be worked out in each area first. Sorta like how Spotify is just now coming to the US after being huge overseas.

Or how some videos on YouTube are limited only to the UK, but not available in the US.

Without those deals in place, and it's never instant... that poses to be a problem for the content portion(s) or they will have to release a crippled Zune connectivity software - like they have for the Mac - which only checks for updates and syncs already purchased apps and contacts... but doesn't have the full promised ecosystem promised.

I don't doubt that localization couldn't be done quickly. It's the content of the ecosystem that's going to not be delivered.

But... this is pure speculation... that could be why the WP7 phones are coming later in the year. They're working out the deals now on content in the areas.