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Telco data services growing fast in "emerging" Asian Countries

Posted By TelecomTV One , 19 March 2008 | 1 Comments | (0)
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For how much longer will we be able to describe India and China as "emerging nations" in the global economies? A new research report says things are changing so fast that this is now an incorrect characterisation and that henceforth the appelation should be used to describe Bangladesh, Pakistan, Sri Lanka and Vietnam – at least in terms of telecoms data services.

According to a new study by research house IDC, the telecoms data services markets in Bangladesh, Pakistan, Sri Lanka and Vietnam are set to rise by a compound annual growth rate (CAGR) of 36 per cent between now and 2011.

In fact, data, undeniably never the most attractive branch on the telco tree, now has mobile data services, fixed line corporate data and Internet access services under its purview and, of late, has really taken-off in Asia. The sector there showed a year-on-year revenue rise of 256 per cent over the course of 2006/2007 and is now estimated to be worth US$952 million per annum.

Commenting on the publication of the report, Karen Rondon, Research Manager for IDC's  Telecommunications Research said, "Corporate customers and consumers in the emerging Asian countries are highly cost-sensitive, and benefits and returns on investments are measured on a short-to-medium term. Services that require small immediate spending
while providing immediate benefits are most attractive to end-users."

Ms.


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(1) 20 March 2008 04:46:03 by Vineeta Shetty

Average revenue per subscriber (ARPU) is a good indicator of the emergent status of a mobile market. China and India are not similar markets except in their raw growth rate. China's ARPU is expected to remain at $10 by 2010, while India's is headed for a decline to $6.6, the rural only ARPU being about $4.5. Pakistan and Bangladesh will hold the world record for low ARPU at $3.50 and $3.00, according to recent estimates. This is because of the vast numbers of low-income people joining the market, many of whom will not graduate to data services, as defined by the prevailing paradigm of handsets and services.