Asia Pacific mobile operators invest 16% of income for Capex, the highest in the world


Despite intense competition, falling prices and margins, operators in Asia
Pacific’s major markets have invested an average of 16.3 percent of their
revenues into capital expenditure, significantly higher than their counterparts
in other geographies.


Furthermore, they have repaid investor confidence.


Operators in developing Asia Pacific countries have reported above-average
equity performance, beating every other region globally, according to GSMA.


The mobile sector is a major contributor to Asian economic growth. The industry
accounts for an estimated $485 billion, or 2.7 percent of GDP, across the 17
major AP17 countries.


13 of the 17 major markets (AP17) in Asia Pacific have at least five network
operators, while India has as many as fifteen. This is contributing to rapidly
declining prices and operator margins in most markets.


In terms of contributions to public funding, almost $300 billion was generated
through various taxes and fees in 2010. Overall, the positive impact of the mobile
sector in terms of job creation, public funding and productivity improvement
will play a key role in leading slowing economies away from potential
recession. This relies on both the players in the mobile ecosystem and a
conducive operating environment based on regulatory policies that will drive
increased coverage, penetration and mobile phone usage, which in turn will lead
to increased economic prosperity.


Between 2005 and 2010, the region’s mobile market showcased historical growth
of 26 percent CAGR, with a slowdown in the projected annual growth rate in the
subsequent five years to 9 percent.


Despite this, Asia Pacific market growth in 2010 to 2015 will be at least twice
the rate of Europe and North America. The region is expected to add nearly as
many connections between 2010 and 2015, at 1.5 billion, as it did over the
previous five years, when 1.7 billion new connections were made. This reflects
the unrivalled scale and potential of the industry in the region.


Operators in developing Asia Pacific countries have reported above-average
equity performance, beating almost every other region globally, and
outperforming the S&P 500.


By Telecomlead.com Team
[email protected]