"Cultural, geographic, political, economic, technological and regulatory factors all contribute to making Asia Pacific one of the most diverse regions in the world for telecommunications, multimedia and technology services--and the diversities are becoming more marked," the market researcher noted in a statement.
According to the UK-based firm, the region's telecoms markets fall into three categories:
- Countries with developed fixed and mobile telecoms infrastructure, established broadband networks, and growing competition. These include Hong Kong, South Korea, Taiwan, Japan, Singapore, New Zealand and Australia;
- Countries with developed mobile infrastructure, developing fixed telecoms and broadband infrastructure, and limited but growing competition. These include China, India and Malaysia; and
- Countries with under-developed mobile and fixed infrastructure, and very limited competition. These include Vietnam, Myanmar, Thailand, Indonesia and the Philippines.
Competition, too, is developing at different speeds across the region. Hence, success in one country cannot necessarily be replicated in another.
The most competitive markets are in Northeast Asia and the Southern Hemisphere, where broadband infrastructure is most developed, Ovum said. "Here, competition has brought price reductions and more innovative services, consumer and corporate demand for broadband services is growing, and international and national connectivity costs are declining."
Within these markets, however, demand can be fragmented. "Northeast Asian countries are characterized by very dense urban populations, often located in multi-tenant units, that are easy to connect and that can rapidly benefit from the delivery of advanced broadband services. Rural communities that do not benefit from these conditions are lagging behind their urban counterparts," it explained in the statement.
In Southeast Asia, competition has developed more slowly. "Many of these countries are small, with low economic activity, difficult terrain and often opaque regulatory procedures, and are unattractive to new entrants.
"As a result, basic telecoms infrastructure is lacking outside the main cities, connectivity costs are still high, and corporate and consumer demand for advanced services lags far behind that in more developed countries."
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