Categories
Business Health Miscellaneous Mobile Phones Networks News

Golden Age of Telecoms Nearly Over For All But A Few Remaining Markets

For the past 20 years the telecoms industry has seen its “golden age”, even growing fast enough to catapult its most powerful figure, Carlos Slim, to the head of the Forbes Rich List. This growth is now beginning to slow and industry analysts Ovum predict that by 2018 the market will see its first decline. Until then, new phone connections will continue to grow by approximately 4% per annum, rising from 6.5 billion to 8.1 billion – more than today’s worldwide total population. Revenues won’t rise nearly as much as this, likely due to the lower incomes of the few remaining markets that telecoms companies will target in the meantime.

Myanmar has previously been highlighted as one of those markets and this week it emerged that the Myanmarese government would be inviting both Orange and Vodafone to pitch to them with the idea of a leading telecoms company partnering with their state run mobile phone operator, MPT. The idea behind inviting these particular network operators to the party is based on Orange coming second in the previous round of bidding for spectrum space in Myanmar and Vodafone now being on everyone’s lips after signing the 3rd largest deal ($130b) in telecoms history.

Both companies offer exciting opportunities to quickly capitalise on the fact Myanmar only have a current mobile phone subscription rate of 9%. To put that into perspective, neighbouring Thailand has a subscription rate of 110%.

Categories
Business Health Miscellaneous Mobile Phones Networks News

Google’s Eric Schmidt due to visit Myanmar for telecoms chat

Back in January, we brought you the news behind Myanmar’s expected growth in the telecoms industry. Imagine how interesting it was to then read this morning that Google’s former chief executive Eric Schmidt is due to visit the booming country next week. His trip there will see him talking with governmental officials at a technology and communications get-together, all coming in the wake of countries changing political stance in 2011. This has vastly increased the attractiveness of foreign business investing in the country, largely considered as an untapped market with huge potential.

Currently in the country formerly known as Burma, mobile subscriptions account for 9% of the 60 million strong population. In neighbouring Thailand mobile subscription account for 110% of the countries population, demonstrating that nearly everyone in the country has a mobile phone with quite a few of those individuals having more than 1 phone. This public interest is likely to filter through into the neighbouring country, showing just how large an opportunity there is in the telecoms sector.

Google’s interest in Myanmar and the reason for the talks is likely to have something to do with the fact that Google themselves are large players in the mobile phone market, being the company behind the world’s most popular operating system, Android. As more and more people own handsets with Android installed, Google themselves being at their core a data business, will have more information to analyse to improve their number 1 revenue generating business, their search engine. For a company in a position such as Google, who can capitalize in various ways from a presence in Myanmar, it represents a huge opportunity where relationships developed during Schmidt’s visit could become critical.

Good thinking.

Image

Categories
Business Health Miscellaneous Mobile Phones Networks News

Myanmar telecoms set to boom

The Government in the Southeast Asian country have invited foreign telecommunications companies to bid for use of 2 of their national licenses by January 25th. The move comes as the country, also known as Burma, seek to expand economic progression after years of nationalised services operated by a military regime. The 2 licenses are part of 4 which are being set up by the countries government, set to come into effect in June 2013.

So far, some of the worlds largest phone networks have expressed their interest in one of the two available licenses. These include Digicel, VNPT-Fujitsu, VimpleCom and Telenor. However, it is expected that more networks will join the bidding process, with competition amongst those interested set to be fierce. At the current time, mobile phone subscribers only account for 9% of the countries population. With a total of 55 – 60 million people, the opportunities for a phone network are huge, especially considering that neighbouring country Thailand have mobile phone subscribers as large as 110% of their population.

It remains to be one of the largest untapped markets left in the world, for both networks and phone manufacturers. As yet, it has been hard to value the opportunities in the market, but a telecoms executive in Thailand has mentioned “billions of dollars” being the figure needed. Since the news was released by the Myanmar Government, HTC, the large phone manufacturer, have announced that they too will be moving into the country to sell their mobile phones.

The future of the countries telecommunications system is yet to be seen, with many viewing the tender process as a test. It will signal the opportunities available in the region, as well as lend ideas to how the Government will approach any other licenses that they could make available in the future. This could mean huge changes in the way the population live and work, setting the country up for exciting times ahead.

Source

Image