Wireless local loop to drive voice market in Asia

IDC’s preliminary results show that the total revenue from fixed-line services in the emerging Asian countries (Bang- ladesh, Pakistan, Sri Lanka and Vietnam) registered a 114.2% annual growth rate from 2005.

The market continues to expand due to great demand for basic communication from the mass market, which IDC is forecasting a strong compound annual growth rate (CAGR) of 14.1% over the next five years. In 2006, Telecom Network Service (TNS) revenues increased 113.9% year-on-year while Internet access service revenues grew 121.7%.

“The emerging markets will continue its rapid growth due to the increasing need for basic voice and data services in the next few years. Regulatory barriers are expected to come down and new guidelines will be framed to embrace the rapid pace of innovation,” says Kam Kasturie, Senior Analyst for IDC’s Malaysia Telecommunications Research. The telephone density is still very low in these countries.

Most of the telephone services are located in the urban areas, while majority of the population live in rural villages. For the longest time, installed capacity was unable to meet the demand due to various reasons, resulting in a long waiting list to get a connection.