Asia-Pacific telco market grows

Telecommunications in the Asia-Pacific region is expected to grow three times as fast as markets in the US and Europe, Deloitte Consulting has estimated in a new report.

Multinational carriers will move offshore as business opportunities in local markets are saturated and the Asia-Pacific becomes an attractive playing field, the report said.

According to the report, 60 per cent of the world's population is located in the Asian region but only 20 per cent of the world's telephones can be found there.

In the report, "Worldwide demand for telephone services: a post-crash guide for global telecom SuperCarriers", Deloitte Consulting forecasts wireless technology will make up a "significant share" of new infrastructure built in the Asia-Pacific and through-out the world over the next decade.

"Telecommunications markets have ceased to be national markets and will increasingly be globalised, not exclusively but particularly in wireless," David Moore, Deloitte Consulting partner, said.

"Globalisation means competitive consolidations and equity positions being sought in the former national monopoly carriers. The SuperCarriers of the Asia-Pacific region should be very well placed because of their highly developed wireless technologies."

According to the report, over the next 10 years wireless telephone traffic will jump from 2 per cent to 30 per cent.

This in part will be driven by the deployment of mobile satellite projects; but according to Deloitte, wireless technology is cheaper and faster to build than traditional landlines.

According to the report, government projects throughout the region that license new spectrums for wireless services will increase deployment, supply, price and demand.

Latest figures from the International Telecommunications Union show in 1996 that wireless technologies contributed to 14 per cent of worldwide revenues in the global telecommunications market.

New figures from Deloitte forecast growth of wireless subscribers in the Asian region of around 100 per cent.

With more than 226 million wireless subscribers worldwide, the growth rate of the technology globally is around 52 per cent a year.

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