Market Overview

Growth Opportunities In South East Asia

The South East Asia region has experienced some of the greatest telecom success stories in recent years, fueled by growing consumer affluence, market liberalization and policy reform. Comprising the ten members of the ASEAN regional group (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) plus East Timor and Papua New Guinea, the region is one of the world's telecommunications hubs. Totalling over 280 million mobile subscribers in March 2008, with an average penetration rate of 49.8% across the region, growth opportunities are significant. Indeed, Informa Telecoms and Media forecasts the total mobile subscriptions to reach over 400 million by 2012.

There are, however, differences between the region's markets, with some highly penetrated markets such as Singapore, Brunei and Malaysia (each over 90% penetration), and some severely under-penetrated ones such as Myanmar (0.6% penetration), Papua New Guinea (3.5%) and East Timor (7.6%). Between these extremes, a number of countries are showing exceptional growth opportunities, thanks to a combination of high population, relatively stable economic environment, and low penetration rates that leave plenty of space for growth: Indonesia, Philippines, and Vietnam are the most notable. The region's markets are attracting investment from its major operator groups (SingTel, Telekom Malaysia International), Hutchison Whampoa), as well as interest from groups outside the region looking for high returns outside their own markets. WiMAX is also a key technology used in the development of broadband access in the region.

South East Asia Mobile Subscriptions and Penetration Rates Evolution