Thursday, January 22, 2004
Asia's phone users to surpass 1 bn in 2004: Report
Agence France-Presse Singapore, January 19
The number of mobile and fixed-line phone users in the Asia Pacific will surpass one billion in 2004 as the telecommunications sector records strong growth, an industry report said on Monday.
An extra 125 million phone users will bring the total to 1.1 billion and drive income growth in this segment up an annual seven per cent to $17.1 billion, technology research house Gartner Inc predicted in a report.
Mobile subscriber growth will in particular maintain its strong growth of recent years and outpace fixed line expansion by a ratio of two to one, it said in the report assessing Asia's telecommunications sector outlook for this year.
The US-based research firm was upbeat in its forecasts, tipping the sector will enjoy better fortunes in 2004, in line with the better economic prospects facing the region as a whole.
Infrastructure-related investment is set to grow for the first time in five years, increasing by nine per cent from 2003, Gartner said.
"This growth is due to better economic conditions, the need to improve carrier financial performance and a decline in price competition," said Bertrand Bidaud, Gartner's regional vice president of telecommunications.
"This will not only result in new service offerings but will also lead to the first growth in telecom investment in the region in five years."
Despite the rosy forecasts, Gartner said not all segments of the industry will enjoy the projected upturn.
"Some sectors of the industry, such as long distance and international, will continue to feel the pain of over-capacity," said Andrew Chetham, Gartners' principal analyst.
"The effect of a renewed focus on growth will be patchy and will not yet pay dividends for many carriers during 2004.
© Hindustan Times Ltd. 2004.