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Defence >
Canada Defence and Security Report Q1 2010
Management Report
Published: February 2010
Pages: For full details, please email keithw@cmsinfo.com
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 590.00 Buy Now!
Research from: Business Monitor International
Sector: Defence
BMI’s latest update on the telecoms markets in Cambodia and Laos include new regulatory and extended five-year forecast data to 2014 for these two countries’ mobile subscriber, fixed-line, internet and broadband markets.
The Cambodian government issued a minimum tariff edict in December 2009 to address and regulate issues related to the pricing of mobile services offered by the operators in the country. The Ministry of Posts and Telecommunication said that the new edict is expected to eliminate the price war among mobile operators. It added that the government will suspend the licence of any operator found guilty of offering services below the defined minimum tariffs. The announcement comes after Sotelco, the Cambodian mobile market’s latest entrant, was warned by the government to increase its tariffs following a dispute with market leader Mobitel. According to the report in the Phnom Penh Post, Mobitel was considering shutting down Beeline’s access to its infrastructure on the basis that the cellco was selling its mobile services below cost price. The aggressive nature of the mobile market, which currently has around nine operators, has caused new service providers to try and acquire new subscriber growth through significantly lowering their tariffs. However, under the new regulation introduced by the government, it is hoped that a price war will not occur. Also, due to the entrance of new competition, there is a danger that mobile growth (BMI estimates average annual growth of 26% over the next five years ended 2014) has been caused more by multiple SIM ownership and inactive SIMs among the population already having access to mobile services. Furthermore, the government is keen to avoid excessive building by encouraging infrastructure sharing. In neighbouring Laos, the improved position of the country in BMI’s latest set of Business Environment Ratings for the Asia Pacific region points to a stronger telecoms market score. As noted previously, the mobile sector in particular has seen the launch of commercial operations by Vietnam’s Viettel, which rebranded as Unitel in late 2009. Furthermore, the entrance of VimpelCom through the purchase of Millicom International Cellular’s stake in Millicom Lao is sure to help boost competition and growth across the telecoms industry.
With low penetration rates across all sectors of fixed line, internet, broadband and mobile, Laos provides significant growth potential. BMI estimates that, by the end of 2014, mobile penetration rates will have reached around 60%, but currently remain around half that. Penetration is expected at 113% in the Cambodian mobile sector. Internet penetration rates in Laos will also reach 3.76% in the same period while broadband will remain under 1%, reaching 0.65%.
The Cambodian government issued a minimum tariff edict in December 2009 to address and regulate issues related to the pricing of mobile services offered by the operators in the country. The Ministry of Posts and Telecommunication said that the new edict is expected to eliminate the price war among mobile operators. It added that the government will suspend the licence of any operator found guilty of offering services below the defined minimum tariffs. The announcement comes after Sotelco, the Cambodian mobile market’s latest entrant, was warned by the government to increase its tariffs following a dispute with market leader Mobitel. According to the report in the Phnom Penh Post, Mobitel was considering shutting down Beeline’s access to its infrastructure on the basis that the cellco was selling its mobile services below cost price. The aggressive nature of the mobile market, which currently has around nine operators, has caused new service providers to try and acquire new subscriber growth through significantly lowering their tariffs. However, under the new regulation introduced by the government, it is hoped that a price war will not occur. Also, due to the entrance of new competition, there is a danger that mobile growth (BMI estimates average annual growth of 26% over the next five years ended 2014) has been caused more by multiple SIM ownership and inactive SIMs among the population already having access to mobile services. Furthermore, the government is keen to avoid excessive building by encouraging infrastructure sharing. In neighbouring Laos, the improved position of the country in BMI’s latest set of Business Environment Ratings for the Asia Pacific region points to a stronger telecoms market score. As noted previously, the mobile sector in particular has seen the launch of commercial operations by Vietnam’s Viettel, which rebranded as Unitel in late 2009. Furthermore, the entrance of VimpelCom through the purchase of Millicom International Cellular’s stake in Millicom Lao is sure to help boost competition and growth across the telecoms industry.
With low penetration rates across all sectors of fixed line, internet, broadband and mobile, Laos provides significant growth potential. BMI estimates that, by the end of 2014, mobile penetration rates will have reached around 60%, but currently remain around half that. Penetration is expected at 113% in the Cambodian mobile sector. Internet penetration rates in Laos will also reach 3.76% in the same period while broadband will remain under 1%, reaching 0.65%.