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2008 Asian - Fixed Voice Market


Attention: There is an updated edition available for this report.

This market report looks at the fixed-line market in Asia and provides an overview of some of the main players in that segment of the market within the various economies of Asia.

Researchers: Peter Evans, Lisa Hulme-Jones

Current publication date:- December 2008 (14th Edition)

Next publication date:- December 2009


EXECUTIVE SUMMARY

This market report looks at the fixed-line market in Asia and provides an overview of some of the main players in that segment of the market within the various economies of Asia.

While the fixed-line market is growing at a comparatively slow pace and is overshadowed by frenzied activity in the booming mobile market, fixed infrastructure remains an important component in the overall development of the telecom sector. By March 2008, Asia had 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.

The standout market in terms of fixed-line subscribers is China with its 365 million subscribers representing more than half the total regional subscriber base. As shown in the table below, China is well ahead of the rest of the market in this respect. It is interesting to note that a number of the highly sophisticated telecom markets in Asia are also highly penetrated fixed-line markets; leaders in this regard are Taiwan (63% teledensity) and Hong Kong (54%). These two are followed by Singapore (42%) and Japan (40%).

Of the 35 or so countries in Asia, the top 10 that are listed in the table ‘Asia - Top 10 fixed-line markets (ranked by subscribers) - 2007’ could claim 550 million (87%) of the region’s 630 million fixed-line services at the end of 2007. As with other segments of the telecom market in Asia, we note the ever-present gap between the developed and developing economies of the region. In the developing economies, the building of essential fixed-line infrastructure has been largely ignored in favour of rolling out mobile networks as a quick way of providing telephone services to the population. In developing countries where governments have tried to force the pace of fixed-line roll-outs, the success rate has been mixed. In the Philippines and Indonesia these programs have been conspicuously ineffective; however, in a market like Vietnam, significant progress has been made, lifting that country up to become one of the more highly-penetrated fixed-line markets in the region at 33% teledensity.

Asia - Top 10 fixed-line markets (ranked by subscribers) - 2007
Country Subscribers (million) Penetration
China 365.4 28%
Japan 51.2 40%
India 39.4 3%
Vietnam 28.5 33%
South Korea 23.3 48%
Indonesia 17.8 8%
Taiwan 14.3 63%
Pakistan 4.9 2%
Malaysia 4.4 16%
Hong Kong 3.9 54%
(Source: BuddeComm based on ITU data)

The other characteristic of the fixed line markets in Asia is that growth has flattened out and in some markets gone into serious decline. The table ‘Asia - Top 10 fixed-line markets (ranked by subscribers) - 2008’ shows the estimated subscriber base for Asia’s top 10 markets at the end of 2008; many of the listed markets are clearly revealing a downward trend. The two exceptions in this group of countries are Indonesia and Vietnam.

Asia - Top 10 fixed-line markets (ranked by subscribers) - 2008
Country Subscribers1 (million) Penetration
China 355.0 27%
Japan 46.0 36%
India 38.5 3%
Vietnam 29.5 34%
Indonesia 25.5 11%
South Korea 23.0 46%
Taiwan 14.1 62%
Pakistan 4.5 2%
Malaysia 4.3 15%
Hong Kong 3.7 51%
(Source: BuddeComm based on ITU data)
Note: 1Estimates.

Apart from the voice services supported by the fixed-line infrastructure in the markets of Asia, the bonus of a healthy and extensive fixed network has been its ability to support DSL-based broadband access. This has seen DSL become the most popular platform for broadband access in Asia. This aspect of the market is addressed more extensively in the complimentary publication: 2008 Asian - Broadband Market.

Peter Evans
November 2008

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

1. AFGHANISTAN
1.1 Fixed network operators in Afghanistan
1.1.1 Afghan Wireless Communications Co (AWCC)
1.1.2 Afghan Telecom
1.1.3 Wasel Telecom
1.1.4 Other licences
2. ARMENIA
2.1 Fixed network operators in Armenia
2.1.1 Armenia Telephone Company (ArmenTel)
3. AZERBAIJAN
3.1 Fixed network operators in Azerbaijan
3.1.1 Aztelekom
3.1.2 AzEuroTel
3.1.3 Terracom Inc (Fire Telecom) - EurAsiaCom
4. BANGLADESH
4.1 Fixed network operators in Bangladesh
4.1.1 Bangladesh Telegraph and Telephone Board (BTTB)
4.1.1.1 Fifth Five Year Plan and beyond
4.1.2 Bangladesh Rural Telecommunications Authority (BRTA)
4.1.3 Sheba Telecom
4.1.4 WorldTel
4.1.5 Basundhara Communications Network Limited (BCNL)
4.1.6 Dhaka Phone
4.1.7 Other licensees
5. BHUTAN
5.1 Fixed network operator in Bhutan
5.1.1 Bhutan Telecom
6. BRUNEI DARUSSALAM
6.1 Fixed network operators in Brunei Darussalam
6.1.1 Jabatan Telekom Brunei (JTB)
6.1.1.1 Services
6.1.2 DST Group
7. CAMBODIA
7.1 Overview
8. CHINA
8.1 Major Operators in China
8.1.1 Overview of major players
8.1.1.1 Analysis - business restructuring in China - January
8.1.1.2 Analysis - China’s telecoms industry restructuring - April
8.1.1.3 Analysis - China’s telecoms industry restructuring - January
8.1.1.4 Analysis - China’s telecoms industry restructuring - March
8.1.1.5 Timetable for China’s telephone users
8.1.1.6 Snow storms damage operator infrastructure
8.1.2 China Mobile Ltd
8.1.2.1 Company overview
8.1.2.2 Financial and operating highlights - Annual Report
8.1.2.3 Recent developments
8.1.3 China Netcom
8.1.3.1 Company overview
8.1.3.2 Financial and operating highlights - Annual Report
8.1.3.3 Recent developments
8.1.4 China Satcom
8.1.4.1 Company overview
8.1.5 China Telecom
8.1.5.1 Company overview
8.1.5.2 Financial and operating highlights - Annual Report
8.1.6 China Tietong
8.1.7 China Unicom
8.1.7.1 Company overview
8.1.7.2 Financial and operating highlights - Annual Report
8.1.7.3 Recent developments
9. GEORGIA
9.1 Fixed network operators in Georgia
9.1.1 Akhali Kselebi Ltd (NewNet Telecommunications)
9.1.2 Egrisi
9.1.3 Sakartvelos Elektrokavshiri (United Telecom of Georgia)
9.1.4 Sakartvelos Telekomi (Telecom Georgia)
10. HONG KONG
10.1 Major fixed network operators in Hong Kong
10.1.1 Pacific Century CyberWorks
10.1.2 City Telecom (HK) Ltd
10.1.3 Hutchison Whampoa Ltd
10.1.4 Wharf T&T Hong Kong
10.1.5 New World Telecommunications Ltd (formerly New World Telephone)
10.1.6 Pacific Internet Hong Kong
11. INDIA
11.1 Fixed Network Operators in India
11.1.1 Overview of operators
11.1.1.1 Bharat Sanchar Nigam Limited (BSNL)
11.1.1.2 Bharti Airtel (formerly Bharti Telenet)
11.1.1.3 Hughes Telecom
11.1.1.4 Mahanagar Telephone Nigam Limited (MTNL)
11.1.1.5 Tata Teleservices Ltd
11.1.1.6 Reliance Infocomm
11.1.1.7 Shyam Telelink
11.1.1.8 BSNL/MTNL merger
11.1.2 International operators
11.1.2.1 Market development
11.1.2.2 Tata Communications (formerly Videsh Sanchar Nigam Ltd (VSNL)
11.1.2.3 Data Access
11.1.2.4 Bharti Telesonic
11.1.2.5 Reliance Communications/Flag Telecom
11.1.3 Other operators
12. INDONESIA
12.1 Major fixed network operators in Indonesia
12.1.1 PT Telkom Indonesia
12.1.1.1 PT Telkom’s KSO partnerships
12.1.1.2 Privatisation of PT Telkom
12.1.2 PT Indonesian Satellite Corporation (Indosat)
12.1.2.1 Privatisation of Indosat
12.1.3 PT Satelit Palapa Indonesia (SATELINDO)
12.1.4 PT Bakrie Telecom
13. JAPAN
13.1 Fixed Network Market
13.1.1 Market overview
13.1.1.1 Dialing parity
13.1.1.1.1 MYLINE Carrier Selection Service (CSS)
13.1.1.1.2 MYLINE calling categories
13.1.1.2 Analysis of Local Loop Unbundling (LLU)
13.1.2 Domestic services
13.1.2.1 Planned discontinuation of domestic fixed-line telephony in Japan
13.1.2.2 Local calls
13.1.2.2.1 Price war
13.1.2.3 National long-distance calls
13.1.2.4 International calls
13.2 Major Operators
13.2.1 Operating environment
13.2.1.1 Regulatory environment
13.2.2 Overview of major operators
13.2.2.1 NTT Corporation
13.2.2.1.1 Financial results
13.2.2.1.2 Operating results
13.2.2.1.3 Company structure
13.2.2.1.3.1 NTT Communications
13.2.2.1.3.2 NTT DoCoMo
13.2.2.1.3.3 NTT Data Corporation
13.2.2.2 KDDI Corporation
13.2.2.2.1 Finances
13.2.2.2.2 Analysis: KDDI going for the local loop
13.2.2.2.3 Fixed line operations
13.2.2.3 Softbank Corporation
13.2.2.3.1 Analysis of the acquisition of Vodafone K.K.
13.2.2.3.2 Finances
13.2.2.3.3 Operations
13.2.2.3.4 Softbank and Disney
14. KAZAKHSTAN
14.1 Fixed network operators in Kazakhstan
14.1.1 Astel
14.1.2 Ducat (formerly Kazintel)
14.1.3 Kazakhtelecom
14.1.4 KazInformTelecom (KIT)
15. KYRGYZSTAN
15.1 Fixed network operators in Kyrgyzstan
15.1.1 Kyrgyztelecom
15.1.2 Others
16. LAOS
16.1 Fixed network operators in Laos
16.1.1 Lao Telecom
16.1.2 Enterprise of Telecommunications Lao (ETL)
16.1.3 Lao Asia Telecom (LAT)
17. MACAU
17.1 Major telecom operator in Macau
17.1.1 Compahnia de Telecomunicações de Macau (CTM)
18. MALAYSIA
18.1 Fixed network operators in Malaysia
18.1.1 Overview of operators
18.1.2 Telekom Malaysia
18.1.3 TRI Celcom
18.1.4 Time dotCom
18.1.5 Maxis Communications
18.1.6 DiGi Telecommunications
19. MALDIVES
19.1 Fixed network operator in Maldives
20. MONGOLIA
20.1 Fixed network operators in Mongolia
20.1.1 Mongolia Telecom
20.1.2 Mongolian Railways Communications (RailCom)
21. MYANMAR
22. NEPAL
22.1 Basic telephone service providers in Nepal
22.1.1 Nepal Doorsanchar Co Ltd/Nepal Telecom
22.1.2 United Telecom Ltd (UTL)
23. NORTH KOREA
23.1 Fixed network operators
23.1.1 Lancelot Holdings
23.1.2 Loxley Pacific (Loxpac)
23.1.3 KT Corporation
23.1.4 Shin Satellite Corp
24. PAKISTAN
24.1 Fixed network operators in Pakistan
24.1.1 Major fixed-line players
24.1.1.1 Pakistan Telecommunication Company Limited (PTCL)
24.1.1.1.1 Annual development plans
24.1.1.1.2 Thuraya alliance
24.1.1.1.3 Public Call Offices
24.1.1.1.4 Future strategies
24.1.1.1.5 Privatisation of PTCL
24.1.1.2 Worldcall group
24.1.1.3 Telecard
24.2 Fixed network voice services
24.2.1 International voice traffic
24.2.2 International prepaid calling card services
24.2.3 Value-added voice services
25. PHILIPPINES
25.1 Fixed network operators in the Philippines
25.1.1 BayanTel
25.1.1.1 Proposed mobile operation
25.1.2 Bell Telecom
25.1.3 Digital Telecommunications Philippines (Digitel)
25.1.4 Eastern Telecommunications Philippines Inc (ETPI)
25.1.5 Globe Telecom
25.1.6 PhilCom
25.1.7 PLDT
25.1.8 Philippine Telephone and Telegraph Co (PT&T)
25.1.9 Smart Communications Inc
26. SINGAPORE
26.1 Fixed network operators in Singapore
26.1.1 Singapore Telecom (SingTel)
26.1.2 StarHub Pte Ltd
26.1.3 Other players
26.1.3.1 Pacific Internet Ltd
26.1.3.2 Singapore Cable Vision (SCV)
26.1.3.3 ST Telemedia
26.1.3.4 Virgin Mobile
27. SOUTH KOREA
27.1 Major fixed-line network players
27.1.1 Overview
27.1.2 KT Corp
27.1.3 Dacom Corporation
27.1.3.1 Powercom
27.1.4 Hanaro Telecom
27.1.5 Onse Telecom
28. SRI LANKA
28.1 Fixed network operators in Sri Lanka
28.1.1 Overview of operators
28.1.2 SLT (formerly Sri Lanka Telecom)
28.1.2.1 Privatisation of SLT
28.1.2.2 National and international networks
28.1.2.3 Revised tariffs
28.1.3 Suntel
28.1.4 Lanka Bell
28.1.5 Lanka Internet & Tritel services
28.1.6 Dialog Broadband Networks
29. TAIWAN
29.1 Fixed Network Operators in Taiwan
29.1.1 Fixed network voice services
29.1.1.1 Market overview
29.1.1.2 VoIP services
29.1.2 Overview of operators
29.1.2.1 Chunghwa Telecom Co Ltd
29.1.2.2 Eastern Broadband Telecom
29.1.2.3 New Century InfoComm Tech Co Ltd (Sparq)
29.1.2.4 Taiwan Fixed Network Telecom
30. TAJIKISTAN
30.1 Fixed network operators in Tajikistan
30.1.1 Tajiktelecom
31. THAILAND
31.1 Fixed network voice services
31.1.1 Market overview
31.1.2 National networks
31.1.3 International networks
31.1.4 Voice over Internet Protocol (VoIP)
31.2 Fixed network operators in Thailand
31.2.1 Major telecom operators by market segment
31.2.2 TOT Corp
31.2.3 CAT Telecom
31.2.4 Proposed CAT/TOT merger
31.2.5 TelecomAsia/True Corp
31.2.6 Thai Telephone &Telecommunications (TT&T)
32. TIMOR LESTE
32.1 Fixed network operators in Timor Leste
32.1.1 Telstra
32.1.2 Timor Telecom
33. TURKMENISTAN
33.1 Overview
34. UZBEKISTAN
34.1 Fixed network operators in Uzbekistan
34.1.1 Uzbektelecom
34.1.2 Buzton
34.1.3 East Telecom
35. VIETNAM
35.1 Fixed network operators in Vietnam
35.1.1 Vietnam Post & Telecommunications (VNPT)
35.1.1.1 Vietnam Data Communications Company (VDC)
35.1.2 Saigon Postel
35.1.3 Viettel
35.1.4 Other operators
36. GLOSSARY OF ABBREVIATIONS
LIST OF TABLES
Table number:
Table 1 - Telephone network statistics in Afghanistan - 2007
Table 2 - Telephone network statistics in Armenia - 2007
Table 3 - Telephone network statistics in Azerbaijan - 2007
Table 4 - Telephone network statistics in Bangladesh - 2007
Table 5 - Fixed telephone line targets and teledensity in Bangladesh - 2010; 2025
Table 6 - Telephone network statistics in Bhutan - 2007
Table 7 - Telephone network statistics in Brunei Darussalam - 2007
Table 8 - Telephone network statistics in Cambodia - 2007
Table 9 - Telephone network statistics in China - February 2008
Table 10 - China Mobile subscribers, annual change, ARPU, prepaid & market share - 1997 - 2007
Table 11 - China Mobile prepaid/postpaid subscribers, MoU and ARPU - 1999 - 2007
Table 12 - China Mobile revenue, EBITDA, CAPEX, net profit - 2000 - 2007
Table 13 - China Netcom subscribers by service and ARPU - 2003 - 2007
Table 14 - China Netcom revenue, EBITDA, CAPEX, net profit - 2003 - 2007
Table 15 - China Telecom key operating statistics - 2004 - 2007
Table 16 - China Telecom revenue, EBITDA, CAPEX, net profit - 2001 - 2007
Table 17 - China Unicom GSM and CDMA mobile subscribers - 2002 - 2007
Table 18 - China Unicom outgoing international and long-distance calls - 2000 - 2007
Table 19 - China Unicom revenue, EBITDA, CAPEX, net profit and EPS - 2001 - 2006
Table 20 - Telephone network statistics in Georgia - 2007
Table 21 - Telephone network statistics in Hong Kong - 2007
Table 22 - PCCW revenue and profit - 2001 - 2007
Table 23 - City Telecom revenue and profit - 2001 - 2007
Table 24 - HTIL revenue and profit - 2002 - 2006
Table 25 - Wharf T&T revenue and profit - 2001 - 2006
Table 26 - Wharf T&T fixed line and IDD volume - 2001 - 2006
Table 27 - Telephone network statistics in India - 2007
Table 28 - Fixed-line basic services1 by operator in India - September 2007
Table 29 - Telephone network statistics in Indonesia - 2007
Table 30 - PT Indosat fixed wireless subscribers - 2006 - 2007
Table 31 - Telephone network statistics in Japan - September 2007
Table 32 - Number of telecommunications carriers in Japan - November 2007
Table 33 - MYLINE subscribers by category - January 2008
Table 34 - Internet, broadband, IP telephony and telecoms statistics for Japan - 2004 - 2007
Table 35 - NTT revenue, net profit, CAPEX and EBITDA - 2000 - 2008
Table 36 - NTT revenue by segment - 2004 - 2007
Table 37 - NTT subscribers and annual change - September 2007
Table 38 - NTT Com operating revenue - 2000 - 2007
Table 39 - NTT DoCoMo subscribers - January 2008
Table 40 - NTT DoCoMo operating revenue and annual change - 1996 - 2007
Table 41 - NTT DoCoMo ARPU, MOU, Churn - 2004 - 2007
Table 42 - NTT DoCoMo Investment in International Operators - March 2008
Table 43 - NTT Data revenue and annual change - 1995 - 2008
Table 44 - KDDI revenue and net income - 1996 - 2008
Table 45 - KDDI proportion of revenue by segment - 2001 - 2007
Table 46 - ADSL and FttH subscribers - 2005 - 2008
Table 47 - Softbank revenue and operating profit - 1995 - 2007
Table 48 - Softbank proportion of revenue by segment - 2007
Table 49 - Softbank revenue, EBITDA, CAPEX - 2005 - 2007
Table 50 - Softbank operational data: millions of subscribers - 2005 - 2007
Table 51 - Softbank ARPU, MOU and Churn - 2001 - 2007
Table 52 - Telephone network statistics in Kazakhstan - 2007
Table 53 - Kazakhtelecom urban and rural fixed-line subscribers - August 2006
Table 54 - Telephone network statistics in Kyrgyzstan - 2007
Table 55 - Telephone network statistics in Laos - 2007
Table 56 - Fixed-line operators’ subscribers and market share in Laos - 2007
Table 57 - Telephone network statistics in Macau - January 2008
Table 58 - Telephone network statistics in Malaysia - 2007
Table 59 - Telephone network statistics in Maldives - October 2007
Table 60 - Fixed-line subscribers in Maldives - October 2007
Table 61 - Telephone network statistics in Mongolia - 2007
Table 62 - Telephone network statistics in Myanmar - 2007
Table 63 - Telephone network statistics in Nepal - 2007
Table 64 - Telephone network statistics in Korea - 2005
Table 65 - Telephone network statistics in Pakistan - March 2007
Table 66 - ‘Fixed-Line’ licences issued by PTA − 2006
Table 67 - Fixed-line subscribers by operator in Pakistan − September 2007
Table 68 - Growth in Public Call Offices (PCOs) in Pakistan - 1999 - 2006
Table 69 - Fixed-line operators, lines, subscribers and market share in the Philippines - 20062
Table 70 - Telephone network statistics in the Philippines - 2007
Table 71 - PLDT mobile service ARPU1 - postpaid & prepaid - 2005 - 2007
Table 72 - Telephone network statistics in Singapore - February 2008
Table 73 - Telephone network statistics in South Korea - 2007
Table 74 - KT Corp broadband subscribers and market share - 2005 - 2007
Table 75 - Hanaro broadband subscribers by access type - September 2006
Table 76 - Telephone network statistics in Sri Lanka - December 2007
Table 77 - SLT fixed-line subscribers and market share - 1999 - 2007
Table 78 - SLT fixed-line subscribers - Wireline versus WLL - 2005 - 2007
Table 79 - Suntel subscribers − 1999 - 2007
Table 80 - Lanka Bell subscribers - 1999 - 2007
Table 81 - Telephone network statistics in Taiwan - 2007
Table 82 - Fixed network operators - market share by revenue in Taiwan - 2007
Table 83 - Chunghwa Telecom fixed subscribers and market share - 2004 - 2007
Table 84 - Chunghwa Telecom subscriber base - February 2008
Table 85 - Chunghwa Telecom revenue, CAPEX, net profit and employees - 2000 - 2007
Table 86 - Chunghwa Telecom fixed-line & mobile subscribers and market share - 2000 - 2007
Table 87 - Telephone network statistics in Tajikistan - 2007
Table 88 - Telephone network statistics in Thailand - 2007
Table 89 - Telephone network statistics in Timor Leste - 2007
Table 90 - Telephone network statistics in Turkmenistan - 2007
Table 91 - Telephone network statistics in Uzbekistan - 2007
Table 92 - Telephone network statistics in Vietnam - 2007
LIST OF EXHIBITS
Exhibit number:
Exhibit 1 - Overview of telecom service and operators in Cambodia - 2007
Exhibit 2 - China - Restructuring Scenario 1
Exhibit 3 - China - Restructuring Scenario 2
Exhibit 4 - China - Restructuring Scenario 3
Exhibit 5 - China’s telephone subscribers - 1998 - 2007
Exhibit 6 - China Mobile Limited at a glance - 2007
Exhibit 7 - China Network Communications Group Corporation at a glance - 2007
Exhibit 8 - China Telecom Corporation Ltd* at a glance - 2007
Exhibit 9 - China Unicom Ltd at a glance - 2007
Exhibit 10 - Sakartvelos Elektrokavshiri’s Tbilisi network infrastructure
Exhibit 11 - The ‘original’ PCCW deal
Exhibit 12 - Major members of MYLINE Carriers Association - January 2008
Exhibit 13 - Significant telecoms operators in Japan
Exhibit 14 - NTT Group structure - January 2008
Exhibit 15 - Softbank operations
Exhibit 16 - Kazakhtelecom’s modernisation program for telecommunications - 2004 - 2007
Exhibit 17 - Telekom Malaysia’s major shareholders - December 2006
Exhibit 18 - PTCL subsidiary companies
Exhibit 19 - Joint ventures and affiliated companies
Exhibit 20 - SingTel regional subsidiaries: shareholdings − 2007
Exhibit 21 - Overview of KT subsidiaries
Exhibit 22 - Telecommunications system operator licensees in Sri Lanka
Exhibit 23 - Major operators by market segment in Thailand

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