Underserved Areas, the Crown Jewels for Growth in Asia's Telecom Industry

Mar 07, 2007, 00:00 ET from Frost & Sullivan

    SINGAPORE, March 7 /PRNewswire/ -- The booming economies of China and
 India are fuelling the growing demand for telecommunication services in the
 Asia-Pacific region.
     New analysis from global growth consulting company, Frost & Sullivan
 (http://www.communicationsservices.frost.com ), Benchmarking of Service
 Providers in Asia Pacific, reveals that the Asia-Pacific telecommunication
 services market -- covering 12 major economies ex-Japan -- which includes
 fixed, mobile, Internet and data communications services, earned revenues
 of U.S. $181.4 billion in 2006, and is estimated to reach U.S. $298.2
 billion by end-2012.
     Mobile services accounted for the bulk of telecom revenues in 2006 at
 61.3 percent, while fixed, Internet and data communications services
 accounted for 25.4, 8.9 and 4.4 percent respectively.
     Fixed telephony subscribers in Asia-Pacific totaled 402.2 million in
 2006 and is expects to grow at a CAGR (compound annual growth rate) of 2.7
 percent from 2006 to 2012, driven mainly by the subscriber growth in China
 and India.
     "While the number of fixed-line subscribers are already on a steady
 decline in most Asia-Pacific countries, markets such as China, India,
 Indonesia and Thailand, which have large populations and low household
 penetration rates, continue to experience growing subscriptions," says
 Frost & Sullivan Research Analyst Karpagam Palaniappan.
     Asia-Pacific has remained one of the few surviving high-growth mobile
 markets at a time when the cellular industry is fast approaching saturation
 globally. In 2006, the cellular subscriber base was 819.5 million
 (ex-Japan) and is forecasted to reach 1.68 billion by end-2012, at a CAGR
 of 10.8 percent (2006-2012). The region's robust growth is fuelled by
 China, India and Indonesia.
     Mobile operators in China, India and emerging markets such as Indonesia
 and the Philippines are now moving into the untapped rural areas to take
 advantage of the low penetration rates and sustain growth.
     Nevertheless, the telecom industry in Asia-Pacific is challenged by
 deregulation, economic conditions, inadequate awareness of emerging
 technologies, low household penetration levels and service quality issues.
 This negatively impacts both consumers and service providers.
     "A case in point is the huge success of IP telephony globally and its
 relatively low impact in Asia-Pacific due to regulatory uncertainty, lack
 of bandwidth, interconnection, and quality of service issues," says
 Palaniappan. "Similarly, technologies such as 3G, WiMAX and FTTx
 (fiber-to-the-exchange), which are rapidly gaining popularity worldwide,
 are only just emerging in Asia."
     Intense competition and market consolidation coupled with innovations
 and investments in emerging technologies, as well as improving the quality
 of customer service are likely to be the key factors shaping the growth of
 the telecom industry.
     The Benchmarking of Service Providers in Asia Pacific study is part of
 the Communications Services subscription and includes research on the
 following countries: Australia, New Zealand, China, India, Thailand, Hong
 Kong, Taiwan, South Korea, Singapore, Malaysia, the Philippines, and
 Indonesia. All research services included in subscriptions provide detailed
 market opportunities and industry trends evaluated following extensive
 interviews with market participants. Analyst interviews are available to
 the press.
     If you are interested in a virtual brochure, which provides service
 providers, vendors/manufacturers, end users, and other industry
 participants with an overview of the Benchmarking of Service Providers in
 Asia Pacific, then send an e-mail to Letticia Leopold, Corporate
 Communications, at letticia.leopold@frost.com with your full name, company
 name, title, telephone number, fax number, city, state, country and e-mail
 address. Upon receipt of the above information, an overview will be sent to
 you by e-mail.
     Frost & Sullivan, a global growth consulting company, has been
 partnering with clients to support the development of innovative strategies
 for more than 40 years. The company's industry expertise integrates growth
 consulting, growth partnership services, and corporate management training
 to identify and develop opportunities. Frost & Sullivan serves an extensive
 clientele that includes Global 1000 companies, emerging companies, and the
 investment community by providing comprehensive industry coverage that
 reflects a unique global perspective and combines ongoing analysis of
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 information, visit http://www.frost.com
      Sarah Lourdes
      Corporate Communications - Asia Pacific
      P: +603.6207.1030
      E: sarah.lourdes@frost.com
      Letticia Leopold
      Corporate Communications - Asia Pacific
      P: +603.6207.1031
      E: letticia.leopold@frost.com
      Mireya Castilla
      Corporate Communications - North America
      P: +
      E: mireya.castilla@frost.com
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      Corporate Communications - Latin America
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      E: jorgelina.pecina@frost.com
      Sharmin Jassal
      Corporate Communications - Australia & New Zealand
      P: +61.2.8247.8900
      E: sharmin.jassal@frost.com
      Nimisha Iyer
      Corporate Communications - South Asia & Middle East
      P: +91.22.4001.3400
      E: niyer@frost.com
      Srividhya Parthasarathy
      Corporate Communications - Europe
      P: +91.44.4204.4668
      E: sparthasarathy@frost.com

SOURCE Frost & Sullivan