Telco Data Services Market in Emerging Asian Countries to Grow at 36% CAGR

Research firm, IDC says that the telecommunications data services market in emerging Asian countries (defined as Bangladesh, Pakistan, Sri Lanka and Vietnam) is projected to collectively grow at a compound annual growth rate (CAGR) of 36% from 2007-2011. The data segment, which includes mobile data services, fixed line corporate data and Internet access services, grew strongly at 258% year-on-year in 2006, reaching US$952 million.

While these four country markets will remain generally voice-centric throughout the forecast period, revenue share of the data segment will improve significantly from 17% in 2006 to over 30% by 2011.

Karen Rondon, Research Manager for IDC’s Philippines Telecommunications Research, said, "Corporate customers and consumers in the emerging Asian countries are highly cost-sensitive, and benefits and returns on investments are measured on a short-to-medium term. Services that require small immediate spending while providing immediate benefits would be most attractive to end-users."

The mobile data segment from the four countries is anticipated to escalate at 41% CAGR from 2007-2011, driven by expected growth in SMS usage. As more high-speed networks become available, other data revenue, apart from SMS, will rise in significance in the coming years.

Fixed lines data, on the other hand, will grow at 24% CAGR from 2007-2011. The corporate data landscape will continue to be concentrated on dedicated leased lines throughout the forecast period, although take-up of IP-based services will gradually increase. Meanwhile, favorable government policies in the four countries will help boost IAS (Internet Access Services) take-up in the long term, increasing market awareness and education of the various Internet access services available.

In countries such as Bangladesh, a growing number of citizens who are migrating abroad could potentially drive future adoption. These citizens are becoming more and more exposed to modern telecommunication facilities and, through constant communication with families back home, would aid in encouraging adoption of various telecommunication services, including Internet access. IDC expects XDSL and prepaid dial-up services will be the most preferred Internet services in the emerging Asian country markets.