South Asian Telecom Statistics and Market Overview report 2007
This annual report offers a wealth of information on the overall Infrastructure development, Fixed and Mobile services, as well as Data markets in: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.. Subjects covered include:
Infrastructure Issues
Regulatory issues and government policies regarding infrastructure
Mobile networks, including Value Added and Next Generation Services, where relevant
Development of Internet services and the growth of broadband access
Brief overview of the major telecommunications carriers and service providers
Executive Summary
This Asia market report covers eight economies in the South Asia sub-region. It takes an overall look at the various telecoms markets, together with a particular look at the telecom statistics which describe the market in each of the countries.
The markets covered include: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
Through 2006 and into 2007, we have continued to see a generally strong run of economic growth throughout the Asian region. The region’s telecommunications sector was clearly benefiting from the healthy economic environment and this had certainly extended to the markets of South Asia.
Across the region, the granting of 3G licences continued, presenting the single biggest upheaval in licensing across the region. South Asia, however, was moving slowly on 3G. India’s regulator, for example, had still not decided on a 3G strategy or timetable, the local industry having become heavily introspective about the regulatory side.
South Asia’s mobile markets have been expanding at a considerable pace. In particular, India’s burgeoning mobile market grew at an annual rate of more than 70% in 2006 and this pattern was continuing into 2007. With the country’s mobile penetration standing at 14% in March 2007, India still had huge growth potential. Coming into 2007, its annual growth rate was continuing at over 70%. There will be around 230 million mobile subscribers in the country by end-2007.
The Internet segment of the market has been sluggish in South Asia, characterised by low subscriptions and low broadband penetration. Usage tends to be considerably higher than subscriptions. India had an estimated 60 million Internet users (6% penetration)
The highlights in the individual markets of South Asia include:
Afghanistan
As the political and social rebuilding of Afghanistan proceeds somewhat fitfully following years of war and civil unrest, the country has started putting a new national telecommunications infrastructure in place. The 2001 war destroyed a telecommunications network already suffering serious disrepair due to neglect by the Taliban government. The nation’s network of telephone lines was left barely functioning. With telecommunications set to play a crucial role in rebuilding the country’s shattered economy and society, a properly functioning basic telephone network was always a priority. An important step was the creation of the Ministry of Communications by the Transitional Government in early 2002. The challenge has been to attract and manage foreign investment in the country. There have been some positive signs in this regard, especially the opening up of the mobile market to competition. But there remains much work still to be done. In the meantime, the government, in a push to develop the fixed-line network, launched what it called the Local Fixed Service Provider (LFSP) program. This program was expected to see hundreds of small-scale investors set up companies at the village or provincial level using WLL technology.
Bangladesh
Bangladesh ranks among the most densely populated countries on the globe, but its fixed-line teledensity remains the lowest in South Asia. With teledensity at less than 1%, only a relatively small proportion of the population has had access to any telecom facility. Almost 99% of homes lacked a telephone and there was a four year waiting list for a fixed-line service. The situation was worse in the rural villages, with more than 90% of Bangladesh’s limited telephone services located in urban areas.
This inevitably set the scene for a massive expansion of the country’s mobile market. There have already been a number of consecutive years of strong growth (138% in 2005, 90% in 2006) in mobile subscribers, and this growth was continuing at 100%+ coming into 2007. Mobile penetration was 16% (20 million mobile subscribers)
The government can be expected to continue to vigorously pursue the de-regulation process. Expanding the national telecom infrastructure remains a priority. A critical factor is that Bangladesh has some of the most underdeveloped telecommunications infrastructure in the world.
Bhutan
A country that preferred to remain isolated from the world from a long time, Bhutan has very recently started to improve its telecommunications capability. To do so it has had to overcome the country’s mountainous landscape. While the country had a basic connection to the outside world as early as 1974, with the introduction of trunk calls between Bhutan and India, it was not until 1999 that television, satellite dishes and Internet services started to appear. The tiny country proceeded to invest relatively heavily – to the tune of around US$27 million - in telecommunications infrastructure between 1996 and 2002 to provide the country with a modern fixed line network. (Note: Accurate statistical information on Bhutan is difficult to obtain.)
India
Sweeping reforms introduced by successive governments over the last decade have dramatically changed the nature of telecommunications in India. The country continues to be one of the fastest growing major telecom markets in the world. Its telecom regulator, the TRAI, says that the rate of market expansion would increase with further regulatory and structural reform. The adoption of Unified Licensing, a change in the Access Deficit Charge regime, increased sharing of infrastructure and coverage of new areas by operators were initiatives designed to contribute to ongoing growth.
Fixed-line services, although not as spectacular as mobiles, have been growing solidly. By end- 2006, the country has passed the 50 million fixed-line milestone. (Note: The statistics on fixed lines in India are complicated by different ways of counting the so-called fixed-wireless services.) In 2001, the government opened the whole fixed-line business to an unlimited number of operators in each of the 21 telecom circles. Prior to this, fixed-line telephony had been the preserve of the state-owned MTNL and BSNL, with only one private company being allowed to compete with an existing state-run player in each circle. VSNL, the former monopoly provider of international telephony, also lost its exclusive status when the market was opened to competition in April 2002.
A series of mergers and takeovers among the mobile operators has produced a welcome consolidation in that part of the market. The ‘licensing by circles’ policy was generally credited with having established a highly competitive telecoms market that has certainly been benefiting the country. With what is seen as a well regulated commercial environment and with further growth potential, India has become an attractive market for foreign investment.
For more information, please visit :
http://www.bharatbook.com/
Photo:
http://www.prlog.org/
