Krishna Baidya’s Random Musings

Mobile carriers must look beyond borders for growth

Posted on: May 8, 2009

Mobile carriers with presence in diverse geographies are more likely to enjoy continued growth in their businesses, compared with providers that focus on a single country, according to a study out today from TeleGeography. Only exception to that could be to leading mobile carriers in India (~48% y-o-y sub growth) and China (~12% y-o-y sub growth) which boasts more than a 2.4 billion population between them and continue to grow at a rapid pace. Even carriers from India & China too looking outside for growth (in 08 we saw talks among Indian carriers to buy shares of South African carrier MTN, China mobile’s investments are in ZoNG in Pakistan, Peoples in Hong Kong’s and Far EasTone in Taiwan).

news20090507-1.gif“The report estimates no fewer than 2.5 billion net new subscribers by the end of 2013. However, growth in the value of the telecoms services market will not keep pace with subscriber growth. The bulk of subscriber growth will come from countries where GDP per capita is under US$3,000 per year. Despite the best efforts of service providers to maintain or increase ARPU, global telecoms service revenues will grow less than 5% annually—less than half the rate experienced over the past five years.”

Above chart offers a relative positioning (in terms of growth prospect and competitive position outside home market) of eight of the world’s leading mobile carrier that was studied by TeleGeography. One clear conclusion is that service providers with a more geographically diversified business have enjoyed much stronger business growth over the last three years and are more profitable.

Quite similar story can be seen in Asia Pacific as well. SingTel and Axiata (TM International) are good examples in the region who are enjoying good growth from their investments in the other emerging markets in the region.

singtel subs*result ending Dec ’08 for SingTel Group (Source : SingTel)

axiata*result ending Dec ’08 for Axiata Group(Source: Axiata)


2 Responses to "Mobile carriers must look beyond borders for growth"

Hey Dude… nice blog… keep it running… by the way are you on twitter yet?

This data shows the real direction where the mobile operators are heading to.

Vodafone may enter South East Asia in several years but I don’t think that It can grasp a big market.

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