Telecom Outlook 2003

December 7, 2002
Asia's biggest growth is yet to come

HONGKONG -- Strong economic growth, coupled with greater consumer spending power, saw a growth in telecommunication services in the Asia-Pacific region, according to a new report by ITU. The effects of the 2001 global economic slowdown have been milder in this part of the world. A ranking of the ten most profitable public telecommunication operators shows that seven originate in Asia.

ITU Asia-Pacific telecommunication indicators released by ITU, report that as a global player the Asia-Pacific region distinguishes itself in size of its telecommunication market and growth in teledensity.

In 2001, the region emerged as the world's largest telecommunication market, having added more than one new telephone user every second for the last decade. The report observes that South Asia, currently the least developed sub-region with a teledensity of 4 in 2001, could provide the next great spurt of growth for the region as this is where the potential for 'catch-up' is greatest.

While Japan and the Republic of Korea continue to lead the world in commercial deployment of 3G networks, small countries like Bhutan and Tonga have also leapfrogged to leading edge technologies such as wireless LANs and IP networks.

Singapore and Hong Kong withdrew exclusivity of their operators' licenses in order to introduce competition in international services. Likewise, Thailand and Vietnam found ways to introduce alternative suppliers and foreign investment into their markets.

Mobile and Internet Economy
In the mobile economy, the Asia-Pacific region is poised to overtake Europe as the world's largest market during 2002, although mobile penetration is still below 10 percent. The region also hosts the economies with the largest number of mobile Internet users: Japan and Korea.

The notion that restrictions on content would hinder Internet usage has been disproved in Asia. Innovative schemes for community access, such as Indonesia's warung internets or warnets, have boosted internet usage, as have prepaid cards and the boom in online gaming and e-government.

Asia-Pacific also leads the world in broadband Internet with five Asian economies among the top 12 worldwide in penetration. Capacity on Internet bandwidth has leapt eightfold over the last two years from 8 Gbit/s to 65 Gbit/s at the end of 2001.

According to co-author Tim Kelly, the region's developing nations now have a much wider range of technical solutions for extending access than at any time in the past. These solutions include mobile, satellite and fixed-wireless access and well as traditional copper-based networks.

"Asia's success story is evident in its rapid strides towards competition, and its sustained growth in the face of regional, and then global challenges," said Hamadoun Touré, director, ITU's telecommunication development bureau. "However, the real reason for confidence lies not so much in the numbers of telephone, mobile and Internet subscribers in the region, but rather, the digital opportunities represented by the large numbers of those still waiting to be connected," Touré added.

Contact:
ITU Telecommunication Development Bureau

Tel: 41-22-730-5519
Email: Michael.minges@itu.int
Web: www.itu.int




Masood Tariq, President Asia Pacific of Nortel Networks, welcomes
Tung Chee Hwa, chief executive of the HKSAR to the company's innovative "Next Generation Services Today" exhibition at the opening of ITU Telecom Asia 2002

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