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BRIC - Telecoms, Mobile, Broadband and Forecasts
Market Study
Published: August 2009
Pages: 750
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 1934.38 Buy Now!
Research from: Paul Budde Communication Pty Ltd.
Sector: Broadband & Fixed
It is not surprising that the world has turned its attention to the BRIC countries and the potential opportunities in terms of telecommunications. Brazil’s telecom market is expected to continue growing despite the global downturn; Russia has the largest mobile market in Europe due to size of its population and India and China are some of the fastest growing telecoms markets in the world. Written by BuddeComm Senior Analysts and comprising of four volumes and over 750 pages , this report contains a unique overview and insight into the telecoms industry in the BRIC economies, including information on fixed line, mobile and broadband services; impact of the global financial crisis; regulatory background and key highlights and statistics.
The BRIC - Telecoms, Mobile, Broadband and Forecasts Annual Publication consists of the following volumes -
• Volume 1 Brazil - Telecoms, Mobile, Broadband and Forecasts
• Volume 2 Russia - Telecoms, Mobile, Broadband and Forecasts
• Volume 3 India - Telecoms Market Trends & Forecasts
• Volume 4 China - Telecoms Market Trends & Forecasts
The key emerging markets of Brazil, Russia, India and China, collectively nicknamed BRIC, are forecast to dominate the world economy by the middle of the twenty-first century.
Brazil’s telecom sector has been fully liberalised; there are no restrictions on foreign telecom capital except for cable TV. Competition is encouraged by the government. Mobile telephony is the strongest telecom market, with fixed-to-mobile substitution leaving the fixed-line sector stagnant despite low teledensity. Brazil holds almost one third of all mobile users in Latin America. Mobile penetration is lower than the regional average, and the mobile market is expected to continue to grow despite the financial crisis.
The recent global financial crisis has dented Russia’s strong economic recovery from the 1998 financial crisis, particularly due to the crash in commodity prices and associated customs duties and taxes which account for nearly half of the federal budget revenue. Exacerbating the situation was the highly leveraged Russian corporations, exposure to US mortgage-backed securities and capital outflows due to concerns over state interference in the economy and increasing tensions between Russia and the West over the conflict in Georgia; these concerns triggered rating agencies to downgrade Russia’s credit rating.
Despite the economic slowdown the telecoms market will fare relatively well given the essential nature of most telecom services although market segments will be affected differently; voice is expected to remain stable while the annual growth rate of the pay TV market in 2009 is expected to be half that of the previous year. The other impact is in capital expenditure, with the cost of financing pushing back projects as operators seek to preserve liquidity.
India without a doubt continues to be one of the most dynamic and fastest growing major telecom markets in the world. There was little evidence by mid-2009 that the global financial crisis was dampening growth in any significant way.
The mobile sector in particular continues its strong march forward. The country’s mobile subscriber base has already grown from around 10 million in 2002 to 350 million by the start of 2009. A number of factors have been responsible for this amazing growth, including low tariffs, low handset prices and most notably a highly competitive market created by the government and the regulator. While GSM technology remains dominant, by early 2009 CDMA was still managing to hang on to a 25% market share.
The Chinese telecommunications market is the largest in the world. With the mobile sector still expanding at over 15% going into 2009, and the long-awaited licensing of 3G services completed after finalising the industry restructure, the market is poised for yet another boost amongst what is hoped to be a more level playing field. The importance of the regulatory regime must not be underestimated in a market like China, where political and commercial considerations are closely intertwined.
China’s telecommunications industry experienced much disruption during 2008. In early 2008, massive snow storms, the worst in five decades, caused widespread disruption to telecom services. Then, later in the year, a major earthquake struck near the Sichuan provincial capital of Chengdu. The 7.5 magnitude quake resulted in thousands being evacuated from buildings in Beijing, some 1,500 km from the epicentre. These natural disasters tested the networks of the major telcos, not to mention their disaster recovery response times.
Despite these testing events, the market continued to experience healthy growth. Not even the global financial crisis could stall the profound growth that has been the phenomenon of the China market in the last decade. The networks withstood the onslaught of the Olympic Games and although uncomfortable under the scrutiny of the international press and the media glare due to China’s strict enforcement of Internet regulations, the country’s networks were robust and successfully beamed coverage of the major sporting event worldwide.
Possibly the most significant change in the Chinese telecommunications market finally occurred in mid-2008 when the market itself was transformed into three major full service operators. The restructuring merged six of the country’s state-owned mobile phone and fixed-line operators into three nationwide carriers offering fixed-line and wireless services, instead of dividing coverage in terms of region or type of service. The newly formed China Mobile, China Telecom and China Unicom are expected to compete fiercely in 2009 to establish themselves as full-service operators.
Written by BuddeComm Senior Analysts’, this report contains a unique overview and insight into the telecoms industry in the BRIC economies, including information on fixed line, mobile and broadband services; impact of the global financial crisis; regulatory background and key highlights and statistics.
The BRIC - Telecoms, Mobile, Broadband and Forecasts Annual Publication consists of the following volumes -
• Volume 1 Brazil - Telecoms, Mobile, Broadband and Forecasts
• Volume 2 Russia - Telecoms, Mobile, Broadband and Forecasts
• Volume 3 India - Telecoms Market Trends & Forecasts
• Volume 4 China - Telecoms Market Trends & Forecasts
The key emerging markets of Brazil, Russia, India and China, collectively nicknamed BRIC, are forecast to dominate the world economy by the middle of the twenty-first century.
Brazil’s telecom sector has been fully liberalised; there are no restrictions on foreign telecom capital except for cable TV. Competition is encouraged by the government. Mobile telephony is the strongest telecom market, with fixed-to-mobile substitution leaving the fixed-line sector stagnant despite low teledensity. Brazil holds almost one third of all mobile users in Latin America. Mobile penetration is lower than the regional average, and the mobile market is expected to continue to grow despite the financial crisis.
The recent global financial crisis has dented Russia’s strong economic recovery from the 1998 financial crisis, particularly due to the crash in commodity prices and associated customs duties and taxes which account for nearly half of the federal budget revenue. Exacerbating the situation was the highly leveraged Russian corporations, exposure to US mortgage-backed securities and capital outflows due to concerns over state interference in the economy and increasing tensions between Russia and the West over the conflict in Georgia; these concerns triggered rating agencies to downgrade Russia’s credit rating.
Despite the economic slowdown the telecoms market will fare relatively well given the essential nature of most telecom services although market segments will be affected differently; voice is expected to remain stable while the annual growth rate of the pay TV market in 2009 is expected to be half that of the previous year. The other impact is in capital expenditure, with the cost of financing pushing back projects as operators seek to preserve liquidity.
India without a doubt continues to be one of the most dynamic and fastest growing major telecom markets in the world. There was little evidence by mid-2009 that the global financial crisis was dampening growth in any significant way.
The mobile sector in particular continues its strong march forward. The country’s mobile subscriber base has already grown from around 10 million in 2002 to 350 million by the start of 2009. A number of factors have been responsible for this amazing growth, including low tariffs, low handset prices and most notably a highly competitive market created by the government and the regulator. While GSM technology remains dominant, by early 2009 CDMA was still managing to hang on to a 25% market share.
The Chinese telecommunications market is the largest in the world. With the mobile sector still expanding at over 15% going into 2009, and the long-awaited licensing of 3G services completed after finalising the industry restructure, the market is poised for yet another boost amongst what is hoped to be a more level playing field. The importance of the regulatory regime must not be underestimated in a market like China, where political and commercial considerations are closely intertwined.
China’s telecommunications industry experienced much disruption during 2008. In early 2008, massive snow storms, the worst in five decades, caused widespread disruption to telecom services. Then, later in the year, a major earthquake struck near the Sichuan provincial capital of Chengdu. The 7.5 magnitude quake resulted in thousands being evacuated from buildings in Beijing, some 1,500 km from the epicentre. These natural disasters tested the networks of the major telcos, not to mention their disaster recovery response times.
Despite these testing events, the market continued to experience healthy growth. Not even the global financial crisis could stall the profound growth that has been the phenomenon of the China market in the last decade. The networks withstood the onslaught of the Olympic Games and although uncomfortable under the scrutiny of the international press and the media glare due to China’s strict enforcement of Internet regulations, the country’s networks were robust and successfully beamed coverage of the major sporting event worldwide.
Possibly the most significant change in the Chinese telecommunications market finally occurred in mid-2008 when the market itself was transformed into three major full service operators. The restructuring merged six of the country’s state-owned mobile phone and fixed-line operators into three nationwide carriers offering fixed-line and wireless services, instead of dividing coverage in terms of region or type of service. The newly formed China Mobile, China Telecom and China Unicom are expected to compete fiercely in 2009 to establish themselves as full-service operators.
Written by BuddeComm Senior Analysts’, this report contains a unique overview and insight into the telecoms industry in the BRIC economies, including information on fixed line, mobile and broadband services; impact of the global financial crisis; regulatory background and key highlights and statistics.