2008 Asian - Telecommunications Infrastructure: Industry Report

2008 Asian - Telecommunications Infrastructure

Product Type: Market Research Report
Published by: Paul Budde Communication Pty Ltd
Published: September 2008
Product Code: R170-1039

Description

This report looks at the infrastructure that supports Asia’s telecommunications markets. The regional market has been continuing its overall strong growth phase and with that there has been a correspondingly strong development of infrastructure. The report looks at the telecom infrastructure in each of the region’s economies. Governments across Asia have long recognised - some earlier than others - that there needed to be some encouragement of private sector investment to meet the demand for the all-important investment capital in the telecom sector. At the same time, it was generally well recognised that this strategy could not rely on local investment alone, and would inevitably mean a substantial level of foreign investment. Of course, despite this recognition, there has nevertheless been some resistance within governments to opening up the telecom sector to foreign investors and as a consequence the level of ‘encouragement’ has been variable.

The changing nature of the telecom market has also had a major impact on the approach to investment in infrastructure. With shifting revenue patterns across the market segments and falling ARPUs on many services, operators have been more selective about what they actually invest in. Telecom operators throughout Asia have been increasing investment levels on the back of carefully considered investment strategies. This has seen companies shifting business focus, looking for new ways to add value to existing revenue streams; it has also seen a strong desire to leverage new value from infrastructure that is already in place.

Over a number of decades the economies of Asia have progressively built substantial fixed-line national networks followed by national mobile networks. In many of the developing nations of the region, the building of fixed-line infrastructure was not far advanced before it was overwhelmed by the introduction of mobile infrastructure. This has created the phenomenon of ‘substitution’ in many of the markets of Asia (where mobile services perform the function of the non-existent fixed services.) Nevertheless, despite the unevenness in disposition, fixed infrastructure remains an important component in the overall development of the region’s telecom sector. By March 2008, Asia had infrastructure in place supporting a total of more than two billion telephone subscribers; of these, more than 630 million were fixed-line subscribers, the remainder of course being mobile subscribers.

More recently the focus of infrastructure building has shifted to the upgrading of domestic telecoms networks to Next Generation Networks. Basically, this process is seeing large scale investment by Asia’s leading telecoms markets in new-generation IP-based telecommunications networks. Those countries that have government backing for NGN roll-out are the ones that are setting the pace. Even some of the lesser-developed markets are pushing hard on this front.

In addition to the national networks, international connectivity remains central to the overall effectiveness of the region’s telecommunications services. Submarine cable routes criss-cross the Asia Pacific area, providing both intra-regional and inter-regional networks. This sector of the market has been characterised by fluctuating supply and demand, which in turn has seen somewhat erratic investment strategies. Over-supply of capacity has been a phenomenon in the market. More recently it has been recognised that investments need to be more focused on growth and less speculative. Starting in 2007, a series of new submarine cable projects were being proposed in the region, mainly trans-Pacific networks aimed at a particular predicted shortfall in capacity between Asia and the US as Asia’s broadband usage started to rapidly increase. However, it was not certain that all these projects would come to fruition, as their respective business cases undergo closer scrutiny.

In the meantime, players operating within the region, including VSNL, FLAG Telecom and PacNet (formerly Asia Netcom), among others, were lighting additional wavelength and fibre pairs on an ‘as-needed’ basis. By adopting this incremental approach to managing spare circuit inventories the operators were working to bring lit bandwidth supply and bandwidth demand into balance. Operators needed to make more of what capacity they already had before getting involved in a new round of submarine network construction and another boom. As the demand for wholesale services has continued to rise in Asia, still driven in the short term by voice services, but in the longer term by data services, there has been a boom in IP-based services, with the volume of international VoIP traffic into and out of Asia increasing at a rapid rate at the expense of the traditional IDD traffic. In the short term this has distorted the demand for bandwidth. However, in the longer term, this will inevitably lead to demand for more optical fibre networks to support the necessary increased bandwidth.

Asia - key developments in infrastructure - 2007 - 2008

By March 2008, Asia had networks and infrastructure supporting a total of more than two billion telephone subscribers; of these, 630 million were fixed-line subscribers and just over 1.4 billion were mobile subscribers;
Asia’s developed markets had started building their NGNs, with IP shaping as the primary delivery platform for telecom services across the region;
The region’s mobile market was growing at an annual rate of almost 30% by mid-2008, maintaining the pressure on operators to expand infrastructure to support their growing subscriber bases and usage levels;
It is estimated that Asia needs to invest at least US$1 trillion in new infrastructure over the next ten years to meet projected demand;
Asia’s submarine cable market was again attracting investor interest as the earlier over-supply problem seems dissipated and increasing demand for bandwidth puts new pressure on capacity;
Redundancy also remained a critical issue for submarine cable systems, providing an additional incentive for fresh investment in this form of infrastructure;
The region saw a number of new satellite launches in 2007/08 and more were scheduled as a steadier pattern of growth in this segment of the market was observed.

(Source: BuddeComm)

Peter Evans
September 2008

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

1. AFGHANISTAN: 1.1 Overview; 1.2 Infrastructure projects
2. ARMENIA: 2.1 Local and national; 2.2 International
3. AZERBAIJAN: 3.1 National telecom network; 3.2 International infrastructure; 3.3 Trans-Asia-Europe (TAE) cable network
4. BANGLADESH: 4.1 National telecom network; 4.2 International infrastructure
5. BHUTAN: 5.1 National telecom network; 5.2 International infrastructure
6. BRUNEI DARUSSALAM: 6.1 National telecom network; 6.2 International infrastructure; 6.3 Infrastructure developments
7. CAMBODIA: 7.1 National telecom network; 7.2 International infrastructure
8. CHINA: 8.1 Overview of infrastructure developments in China; 8.2 National telecom networks; 8.3 International infrastructure; 8.4 Fibre-to-the-Home (FttH); 8.5 Broadband over Powerline (BPL)/Powerline Communications (PLC); 8.6 Next Generation Networks (NGNs); 8.7 IP-Virtual Private Network (IP-VPN); 8.8 IP telephony/ VoIP; 8.9 Telecoms & IT
9. GEORGIA: 9.1 National telecom network; 9.2 International infrastructure
10. HONG KONG: 10.1 Overview; 10.2 Mainland connection; 10.3 National infrastructure; 10.4 Full liberalisation of FTNS market; 10.5 Submarine cable networks; 10.6 Satellite networks; 10.6.3 Asia Broadcast Satellite (ABS)
11. INDIA: 11.1 National infrastructure; 11.2 International infrastructure; 11.3 Infrastructure developments
12. INDONESIA: 12.1 National infrastructure; 12.2 International infrastructure
13. JAPAN: 13.1 Overview of infrastructure developments in Japan; 13.2 Regulatory issues; 13.3 Major national infrastructure players; 13.4 Broadband networks; 13.5 Fibre-to-the-Home (FttH); 13.6 IPv6; 13.7 International submarine cable infrastructure; 13.8 Satellite infrastructure; 13.9 Voice over Internet Protocol (VoIP)
14. KAZAKHSTAN: 14.1 National telecom network; 14.2 International infrastructure
15. KYRGYZSTAN: 15.1 National telecom network; 15.2 International infrastructure
16. LAOS: 16.1 National telecom network; 16.2 International infrastructure
17. MACAU: 17.1 Domestic and international
18. MALAYSIA: 18.1 Overview; 18.2 National telecom network; 18.3 International infrastructure; 18.4 Voice over Internet Protocol (VoIP)
19. MALDIVES: 19.1 National telecom network; 19.2 International infrastructure
20. MONGOLIA: 20.1 National telecom network; 20.2 International infrastructure
21. MYANMAR: 21.1 National infrastructure; 21.2 International infrastructure
22. NEPAL: 22.1 National telecom network; 22.2 International infrastructure
23. NORTH KOREA: 23.1 National telecom network; 23.2 International infrastructure
24. PAKISTAN: 24.1 National telecom network; 24.2 International infrastructure; 24.2.4 Paksat Project; 24.3 Infrastructure developments
25. PHILIPPINES: 25.1 Overview; 25.2 National telecom network; 25.3 International infrastructure; 25.4 Infrastructure developments
26. SINGAPORE: 26.1 National telecom network; 26.2 International infrastructure; 26.3 Infrastructure developments; 27.10 Apartment LANs; 27.11 National submarine cable infrastructure; 27.12 International submarine cable infrastructure; 27.13 Satellite infrastructure; 27.14 Data communications
28. SRI LANKA: 28.1 Overview; 28.2 National telecom network; 28.3 International infrastructure; 28.4 Telecom City Project
29. TAIWAN: 29.1 National telecom network; 29.2 International infrastructure
30. TAJIKISTAN: 30.1 National and international; 30.2 Infrastructure developments
31. THAILAND: 31.1 National telecom network; 31.2 International infrastructure
32. TIMOR LESTE: 32.1 International infrastructure
33. TURKMENISTAN: 33.1 National and international
34. UZBEKISTAN: 34.1 National telecom network; 34.2 Satellite communications
35. VIETNAM: 35.1 National telecom network; 35.2 National infrastructure projects; 35.3 International
36. GLOSSARY OF ABBREVIATIONS
LIST OF TABLES: Table number: on page number:; Table 1 - Fixed-line subscribers and teledensity in Afghanistan - 1994; 2000 - 2007; Table 2 - Fixed lines installed in Afghanistan − 2002 - 2006; Table 3 - Fixed lines in service and teledensity in Armenia - 1991 - 2007; Table 4 - Fixed lines in service and teledensity in Azerbaijan - 1995 - 2007; Table 5 - Fixed-lines and teledensity in Bangladesh - 1995 - 2007; Table 6 - Fixed lines in service and teledensity in Bhutan - 1995 - 2007; Table 7 - Fixed lines in service in Brunei Darussalam - 1990 - 2007; Table 8 - Fixed lines in service in Cambodia - 1995 - 2007; Table 9 - Network distribution of bandwidth in China - 2003 - 2007; Table 10 - Registered Tom-Skype users in China - 2005 - 2007; Table 11 - China Unicom ILD: PSTN versus VoIP traffic - 2003 - 2007; Table 12 - China Netcom long-distance telephony: PSTN versus VoIP traffic - 2003 - 2007; Table 13 - Public data and multimedia users in China - 1998 - 2000; 2005; 2010; Table 14 - Fixed lines in service and teledensity in Georgia - 1995 - 2007; Table 15 - Fixed-line in service and teledensity in Hong Kong - 1994 - 2007; Table 16 - AsiaSat revenue and profit - 2005 - 2006; Table 17 - AsiaSat satellite utilisation - 2005 - 2006; Table 18 - APT Sat revenue and profit - 2001 - 2006; Table 19 - APT Sat satellite utilisation - 2003 - 2006; Table 20 - Fixed-line subscribers and teledensity in India - 1995 - 2005; Table 21 - Fixed-line subscribers and teledensity in India - 2005 - 2007; Table 22 - Growth of VPT scheme in India - 2001 - 2007; Table 23 - PCOs in operation and market share by operator in India - September 2007; Table 24 - Fixed WLL subscribers in India - 2004 - 2006; Table 25 - International undersea cable capacity in India - 1997 - 2007; Table 26 - National network statistics and annual growth in Indonesia - 2005 - 2007; Table 27 - Fixed lines in service and teledensity in Indonesia - 1995 - 2007; Table 28 - Fixed lines subscribers and annual change by operator in Indonesia - 2007; Table 29 - PT Telkom fixed lines in service - 2005 - 2007; Table 30 - Five-year USO deployment of lines plan for villages in Indonesia - 2006 - 2010; Table 31 - Fixed wireless (WLL) subscribers by operator in Indonesia - 2007; Table 32 - PT Telkom fixed wireless subscribers - 2007; Table 33 - VoIP subscriber growth in Japan - 2003 - 2007; Table 34 - VoIP subscribers and market share by operator in Japan - September 2007; Table 35 - VoIP subscribers by number category in Japan - September 2007; Table 36 - Fixed lines in service and teledensity in Kazakhstan - 1995 - 2007; Table 37 - Fixed lines in service and teledensity in Kyrgyzstan - 1991 - 2007; Table 38 - Fixed lines in service in Laos - 1995 - 2007; Table 39 - Fixed-lines and teledensity in Macau - 1991 - 2008; Table 40 - Fixed lines in service and teledensity in Malaysia - 1995 - 2007; Table 41 - Fixed lines in service and teledensity in the Maldives - 1995 - 2007; Table 42 - Fixed-line subscribers by region in the Maldives - October 2007; Table 43 - Fixed lines in service and teledensity in Mongolia - 1994 - 2007; Table 44 - Fixed lines in service in Myanmar - 1990; 1995 - 2007; Table 45 - Fixed-lines in service and teledensity in Nepal - 1995 - 2007; Table 46 - Fixed lines in service and teledensity in North Korea - 1990 - 2005; Table 47 - Fixed lines in service and teledensity in Pakistan - 1991 - 2007; Table 48 - WLL subscriber growth in Pakistan - 2005 - 2007; Table 49 - WLL operator subscribers and market share in Pakistan - September 2007; Table 50 - Fixed subscriber growth - wireline and wireless (WLL) in Pakistan - 2005 - 2007; Table 51 - Fixed lines in service and teledensity in the Philippines - 1994 - 2007; Table 52 - Total SAS lines installed by operators at target date in the Philippines - end-2002; Table 53 - Fixed lines installed versus lines in operation and penetration rate in the Philippines - 1995 - 2007; Table 54 − Fixed lines in service and penetration in Singapore − 1998 - 2008; Table 55 - ISDN subscribers in South Korea - 1994 - 2006; Table 56 - Fixed lines in service and teledensity in Sri Lanka - 1995 - 2008; Table 57 - WLL subscribers in Sri Lanka - 1996 - 2008; Table 58 - Fixed lines in service and teledensity in Taiwan - 1995 - 2007; Table 59 - International outgoing calls overview in Taiwan - 1980; 1985; 1990; 1995; 2000 - 2006; Table 60 - Fixed lines in service and teledensity in Tajikistan - 1995 - 2007; Table 61 - Fixed-lines and teledensity in Thailand - 1995 - 2007; Table 62 - Number of public payphones by provider in Thailand - 2006; Table 63 - Fixed lines in service in Timor Leste - 1995; 1998 - 2000; 2003 - 2007; Table 64 - Fixed lines in service and teledensity in Turkmenistan - 1991 - 2007; Table 65 - Fixed lines in service and teledensity in Uzbekistan - 1991 - 2007; Table 66 - Fixed lines in service and teledensity in Vietnam - 1990 - 2008
LIST OF EXHIBITS: Exhibit number: on page number:; Exhibit 1 - Telemedicine in Afghanistan - June 2007; Exhibit 2 - Major submarine cables with landing points in Brunei Darussalam − 2007; Exhibit 3 - Regional/international fibre optic cable networks; Exhibit 4 - Selected Chinese satellite service providers and satellites; Exhibit 5 - China Satcom satellite fleet; Exhibit 6 - Fixed Telecommunications Network Services (FTNS) licensees in Hong Kong - 2007; Exhibit 7 - Major submarine cables with landing points in Hong Kong − 2006; Exhibit 8 - External FTNS licensees in Hong Kong - November 2007; Exhibit 9 - Satellite Based External FTNS licensees in Hong Kong - August 2007; Exhibit 10 - ISRO satellite network − March 2008; Exhibit 11 - Original consortia and KSO operating in each geographical zone in Indonesia; Exhibit 12 - Indonesian satellites - 2007; Exhibit 13 - Major global/regional submarine cables with landing point in Japan − 2006; Exhibit 14 - Construction of the National Information Highway (NIH) backbone in Kazakhstan; Exhibit 15 - Major submarine cables with landing points in the Philippines − 2008; Exhibit 16 - International submarine cable systems with Singapore landing − 2007; Exhibit 17 - National submarine fibre optic cables and statistics in South Korea; Exhibit 18 - International submarine fibre optic cables and statistics in South Korea; Exhibit 19 - External Gateway Operator (EGO) licences in Sri Lanka; Exhibit 20 - Key service concessions in Thailand; Exhibit 21 - National satellite network in Thailand − 2007

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