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Telecom Future In India And China

India and China are top of the class when it comes to global telecom growth rates, with a total of 200 million subscribers between them in the first quarter of 2007, according to a UN report.

“Some 61% of the world’s mobile subscribers are in developing countries, fueled by countries like Brazil, China, India and Russia,” said the report, from the International Telecommunications Union.

China has 87 million subscribers, India has a penetration rate of nearly 15% with 110 million subscribers. India, the world’s fastest-growing telecoms market, adds about 7 million subscribers every month. Intense competition has lead to discounted rates which in turn fuel demand.

Mobile penetration rates in developing countries, excluding the least developed, grew from 26% in 2005 to nearly 34% in 2006, the report said. The average level of Internet usage in developing countries in 2006 was only 10%. Forty-eight of the 71 developing countries that submitted statistics for the study said that broadband penetration rates were less than 1%, and even China had a rate of only 2.9%.

An increasing number of developing and emerging countries have joined the ranks of the list of top broadband subscribers (ranked by total number of subscribers rather than penetration rates), including Argentina, Brazil, India, Mexico, Poland, Russia and Turkey, ITU said.


India has exceeded its target of 40 million Internet subscribers three years ahead of time.

“Growth in the ICT sector has been nothing short of buoyant in the past year,” the report pointed out. In 2006, there were about 4 billion mobile and fixed-line subscribers and more than 1 billion Internet users worldwide. This included 1.27 billion fixed-line subscribers and 2.68 billion mobile subscribers.

As countries adapt new technologies, fixed-line operators face increased competition from wireless telecommunications operators, providers of cable television networks and large Internet content providers with strong brands and deep pockets, the UN agency points out.

But the least developed countries lag when it comes to mobile phone penetration as well as high-speed Internet connections. Only 22 of 50 of these countries offered broadband last year, and users in these countries often “pay extortionate rates for relatively low-speed broadband.”


Source: http://www.forbes.com

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