Biggest Change: 1990-2010

Biggest Change: 1990-2010

Industry executives  |   April 23, 2010
Telecom Asia

Outsiders in a telco world 

The acceleration in the kind of competitors coming into what people felt was traditionally the telco space. This has driven a new competitive atmosphere, a new challenge to operators to either become more efficient and focus on the customer or become dinosaurs and die. There's been a tendency in the past for telcos to focus too myopically on the network, which is just one part of the story.

For example, Google is coming in and investing in cable systems but they're not providing network services to anybody - they're driven by marketing and eyeballs and advertising, and they're building or investing in infrastructure where they think they need more capacity or speed or lower costs to drive that core business where they really make their money.

- Byron Clatterbuck, SVP of Global Transmission Services, Global Carrier Solutions, Tata Communications


From convenience to necessity

The way in which the world communicates has changed more in the last decade than in all history.

In 1999, more than a century after its invention, fewer than one in six people had access to a telephone of any kind. Now seven in ten people have a mobile phone. According to an IBM survey, after their homes most consumers list mobile and broadband as the next two essentials they are most unlikely to give up. In emerging markets, the mobile has even become the single most transformative tool for development - delivering public information and advisory services to rural communities as well as mobile payments and money transfer services where banking services are relatively under-developed.

- Rob van den Dam, Global Telecommunications Industry Leader, IBM Institute for Business Value


ARPU drops, penetration soars

The most significant development in Asia-Pacific telecom market is the shift in the business model, with tariffs plunging and penetration soaring. The business model has changed from high ARPU, low penetration to low ARPU with significant growth in penetration. Between 2004 and 2008 on average, ARPU for APAC has gone down by about 35%. Meanwhile, penetration has increased 57% annually (from 2000-2008) while the average ebitda margin is still at a health level of 40.8% (2008).

In Indonesia the most significant change was the shift from coverage to price. In addition, open regulation allows more competitors to enter the market. This allowed the cost of communication to decrease significantly from one of the most expensive to one of the cheapest in the world.

- Hasnul Suhaimi, PT XL Axiata president director

Tell Us What You Think

Add comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <a> <p> <span> <div> <h1> <h2> <h3> <h4> <h5> <h6> <img> <img /> <map> <area> <hr> <br> <br /> <ul> <ol> <li> <dl> <dt> <dd> <table> <tr> <td> <em> <b> <u> <i> <strong> <font> <del> <ins> <sub> <sup> <quote> <blockquote> <pre> <address> <code> <cite> <embed> <object> <strike> <caption>
  • Lines and paragraphs break automatically.
  • Use <!--pagebreak--> to create page breaks.

More information about formatting options

Video from Telecom Channel

Smart is wasting no time offering mobile advertising
Offering inventory to advertisers is one way Smart sees the mobile advertising ecosystem developing.    
 

Voices_tabs

Robert Clark
New law to require telcos to sniff out state secrets?
Joseph Waring
14-year-old racks up HK$16k data bill in 10 days -- turning off GPRS on HTC Magic isn't an option
Charice Wang/Ovum
Frequencies will not become available until 2015
Pascal Deriot/ Maravedis
The market growth should spur a similar boom for device shipments this year
John C. Tanner
If the last 20 years were a wild ride, the next 20 will bring even more changes and disruptions
Charles Mok
The industry has been slow to move to IPv6 because it has no immediate benefits, so everyone waits

businessweek_industryview

Aaron Ricadela
With Microsoft and IBM now offering rival services, Amazon says its own efforts could one day surpass retailing revenues
John Dumbleton, Masergy
A radical new approach to storing and analysing traffic statistics

MWC2010 List

MOBILE WORLD CONGRESS 2010
HTC guns for top 3 smartphone makers
Powermat wants to charge your desktop
Femtos outlook improves as cellcos seek offload options
Cheaper smartphones key to broadband takeup

Frontpage Content by Category

Industry experts put their heads together and stick their necks out to call the big trends for 2010

lighter_side_telecom_career

Staff Writer
To survive the next ten years in the free internet world
Robert Clark
Second senior departure in a month