Following the 3G auction in Thailand, here is a quick comment/quote from Mrs. Nattaporn Phan-Udom, Partner and Leader of Technology, Infocomm and Entertainment and Media (TICE), PricewaterhouseCoopers (PwC) in Thailand.
“In longer term, commercial 3G launch would ultimately help mobile operators increase their revenue from higher data usage and mobile broadband service. Thailand has a mature and competitive telco market, with mobile penetration rate expected to be at about 120% in 2012. That said, when you compare this with other markets in Southeast Asia where countries like Malaysia, Vietnam, Cambodia each has significant mobile penetration rate of over 130%, obviously we still have more room to grow.”
“PwC expects intense competition among the bid winners to woo existing and new subscribers to the 3G regime quickly. This should result in higher marketing expenses due to promotional activity, while operating costs could increase in line with a rise in network capital expenditure. Bid winners could potentially seek partners from other sectors to provide content and applications jointly.”
“Increasingly, we also expect key players moving to converged model including providing combination of mobile and WiFi access.”
“Most of emerging Southeast Asian countries have reached maturity stage with more than 100% mobile penetration rate. The Philippines, Indonesia and Vietnam, for instance, each has subscriber base of over 100 million. In Thailand’s case, our subscriber base reaches 77.4 million, again providing more room for growth opportunity.”
“Most subscriber growth in most Asian countries is expected to slow as the market matures, especially in urban areas. Key growth markets in Asia over the next five years are Indonesia and China.”
“Over this decade, global mobile subscription is expected to increase at a CAGR of 5.6%, reaching 9.7 billion subscribers in 2020. Global telco growth would be led by Asia, which accounts for close to two-thirds of the world’s population. With Asia Pacific’s relatively low teledensity rate for mobile phone and mobile broadband, there’s significant room for telco market growth.”