CEO Conclave 2007

The SAARC Telecom Report

THE SAARC region is one of the fastest growing telecom markets. With approximately 250 mn subscribers already and penetration level below 20%, there lies a great potential for growth. Last year, the telecom market in the region grew at 40%. India had 130 mn mobile subscribers by May 2007. Total number of mobile subscribers in the region was around 187 mn and landline subscriber base was 67 mn.

Even Afghanistan, which is the last country to join SAARC and is facing a war like situation, grew at 90% year-on-year basis. Afghanistan has liberalized its Telecom Policy and is promoting competition.

Other smaller markets like Nepal, Bhutan and the Maldives have recently changed their policy allowing more and more operators to operate. Nepal is working on the new 3G Policy. One of the operators has already started to offer 3G services. The Maldives is the only country to have reached near saturation level. Bhutan, which was till recently a closed country, has opened up its market and holds a lot of potential making heavy investments in telecommunication infrastructure. Even though population of Bangladesh is very high, mobile penetration is still very low at 14%.

Sri Lanka has one of the most liberalized telecom space; it is a pioneer in the 3G space. Pakistan is a high growth market opened recently and benefits are already visible. And like in India, mergers and acquisitions are happening in there as well. Recently, China mobile bought controlling stakes in Paktel.

India is definitely the largest and most lucrative market in the telecom space; with the push now on rural telephony, it will unleash a lot of the untapped market.