Which were the fastest-growing telecoms markets in 2014?
TELECOM MARKET OVERVIEW
The telecommunication industry is considered to be one of the most dynamic industries globally. In
the last few decades, the telecom industry has made rapid improvements in its
services. In fact, it has changed the entire business scenario and uplifted
various economies. In the present day telecom industry, the main revenue
earning machine is mobile services. More and more companies, both public
and private have started operating in order to tap the various unexplored markets.
Over the year, the telecommunication services have become quite affordable to
the general consumers, which have also led to the development of some of the fastest
growing telecom markets.
FASTEST GROWING TELECOM MARKETS
A few numbers of fastest-growing telecom markets exists presently in various geographies across the
globe. Some of them have been elaborated here below.
DEVELOPING NATIONS:
BRIC NATIONS:
In terms of the fixed line telecom industry, the Brazil, Russian Federation, India, and China
(BRIC) nations are the inchoate and fast-growing market and had a total market
value of $92.3 billion in 2014. Among these nations, China is the foremost
country with market revenues of $35.9 billion in 2014, which was followed by
Brazil, Russia, and India have a revenue value of $35.0, $17.0, and $4.5
billion, respectively. Brazil was also considered to be the fastest-growing
market with a CAGR of nearly 6 % for the period of 2010-14. Brazil is
anticipated to be the front-runner in fixed-line telecoms industry by having a revenue value of $43.8 billion in 2019, followed by China, Russia, and India
with projected values of $40.8, $17.8 and $4.8 billion, respectively. The
growth is mainly triggered due to the huge population base, prevailing in these
nations.
CHINA:
Currently, China is the world’s biggest and fastest-growing telecom market. As per the Chinese
Ministry of Industry and IT (MIIT) source, it has the world largest mobile
phone subscriber base with more than 1.3 billion consumers. In the entire year
of 2014, China’s mobile consumers grew by 57 million. In the last year, overall
China’s telecom industry generated revenue growth of around 4% over the
previous year’s revenue.
In China, the
mobile telecom revenue was estimated to grow around 3% in 2014, over the
revenue fig in 2013.
China’s 3G/4G
subscribers were expected to reach nearly 583 million in 2014. In the last year, they have increased by 181 million.
(All Units
are in USD)
In 2014, the telecom
fixed asset investment in China increased by 6.3% in comparison to the previous
year.
The telecom penetration rate in China for the fixed-line phones was found to be at 18.3%, whereas the mobile phone penetration rate was recorded at 94.5%. As per IDC, China has
overtaken the US, in terms of smartphone shipments, mainly because of their strong
end-user demand and desire for lower-price range smartphones.
China’s
agreement with the World Trade Organization (WTO) in 2001 had stemmed into the steady initiation of the telecom services market to overseas companies. Major
restructuring of the Chinese telecom industry took place in 2008 that gave its
way for a significant degree of market alliances. Due to this reorganization,
three primary telecom operators surfaced out, who created strong foothold of
the whole of the Chinese market. Subsequent to its coming in terms of the WTO
agreement, China had developed plans that also comprised of embracing
western-style telecommunications law and establishing up an autonomous supervisory and adjudication entity in order to handle the telecom operators. Under the WTO
commitments, the Chinese government opened the telecom carriers market for the overseas venture capitalist. The foreign investors were approved to develop
joint ventures, spending up to 50% of venture capital in online services in the
entire country, till 49% in the mobile telecom sector in certain numbers of
major Chinese cities and only 25% in fixed-line basic services in three major
cities such as Beijing, Shanghai and Canton in 2005.
INDIA:
Presently, India
is the second-largest telecommunications market of the world and has recorded outstanding progress in the last few years. The Indian mobile market is rising fast and will aid nearly US$ 400 billion to India’s total GDP. The fast advances in
the telecom sector have been expedited by the generous dogmas of the Indian
Government that offers relaxed market entrée for telecom paraphernalia and a non-discriminatory monitoring charter of presenting telecom
services at reasonable prices. The reformation of FDI rules in India has enabled this to be one of the fastest-growing sectors, which was also triggered by the resilient acceptance of data usages on mobile devices. The mobile services
market revenue in India reached US$ 29.8 billion in 2014 and wasanticipated
to meet at US$ 37 billion in 2017, growing at a CAGR of 5%as per the research by
IDC. Conferring to a study conducted by GSMA, it has been anticipated that India
is all ready to become the fourth-largest smartphone market. India is expected
to have 213 million mobile internet subscribers by the mid of 2015.The
broadband services subscriber base in India is projected to increase to 250
million connections by 2017 as per the UK-based GSMA report. India seemed to
have the fastest growth in new mobile handset connections of 18 million in the
third quarter of 2014, which was followed by China with new additions of 12
million according to Ericsson.
SUB-SAHARAN AFRICAN NATIONS:
According to Analysis
Mason, the Sub-Saharan Africa telecoms market has been rapidly moving towards from
mobile voice towards mobile data services as indicated through revenue growth. Telecom
service revenue in this market is expected to grow at a CAGR of 6% for a period
of 5 years ending in 2018. The telecom revenue for 2014 was estimated at USD 52
billion.
Due to enhanced
3G coverage and extensive launching of low priced smartphones have actually aided
the rapid adoption of mobile data services. The Sub-Saharan Africa market contributed
nearly 3% of worldwide telecoms revenue in 2013. It is also expected to rise to
3.6 percent in 2018. Mobile-broadband penetration in Africa reaches close to
20% in 2014,up from 2% in 2010.
Conclusion:
The developing
nations are the ones to have shown the fastest and relatively highest growing
telecom markets. Similarly, China, India, and Sub-Saharan African nations are
found to be the leading telecom markets in the world with the highest growth rate.
Mainly secondary
and few original sources have been used for the research purpose.
List of Sources:
Secondary
Sources:
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