2009-01-29
Cambodia and Laos Telecommunications Report Q1 2009 - a new market research report on http://www.companiesandmarkets.com
This is BMI’s first report on the increasingly important telecommunications markets of Cambodia and Laos. This is important not only because of their fast-growth markets but both countries are also becoming important destinations for a number of telecoms operators from fellow emerging markets.
Luxembourg-based Millicom International has had an interest in both markets for some time.
In Cambodia, the operator is the market leader in the mobile sector via its unit CamGSM, with an overwhelming 62.9% stake in the sector. The operator has a slightly weaker presence in the Laos market, but offers services of fixed-line (third-ranked with a 2.7% share), internet and mobile (No3 with a 12.1% stake).
Thailand-based Shinawatra operates CamShin, Cambodia’s second-ranked position with a market share of 18%. Another Thai-based company, Shenington has a strong presence in Laos. It not only has around 63.4% of the mobile sector, providing it with a dominant position, but it also dominates the fixed-line market with over 80% of the sector, a position it has enjoyed for some time. Telekom Malaysia, meanwhile retains a third-ranked operating presence via TMIC in the Cambodian mobile market, with a 14.2% share.
During 2009, we also expect greater presence from neighbouring Vietnam. Viettel, the country’s Ministry of Defence-run telecoms unit, received permission to offer mobile services in both the Cambodian and Laos markets. In the Cambodian market, the operator is expected to be joined by Taiwanese incumbent operator Chunghwa Telecom, while, in the Laos market, Viettel has already established operations and expects to attain around 1.5mn subscribers by YE10. Viettel’s Laos operation, Star Telecom Company (STC) is a joint venture with Laos Asia Telecommunications, which already has a 3.2% share of the Laos mobile market.
The Cambodian market has also attracted the attention of Russian companies. Cambodian operator Sotelco was acquired by Russian operator VimpelCom in July 2008 from Altimo at a cost of US$28mn for a 90% stake. VimpelCom has pledged around US$200mn to be spent in its Cambodian network in the first three to four years following its commercial launch. By December 2008, Sotelco had signed a contract with China’s Huawei Technologies to build a national GSM network over a five-year period.
High costs of internet connection mean that internet take-up is very low in both Cambodia and Laos. At the end of 2007, broadband penetration was under 0.1%. BMI fully expects this to grow to 0.2% in Cambodia and Laos by the end of the decade, driven by greater competition in the marketplace, reduced tariffs and cost of PCs and laptops.
Luxembourg-based Millicom International has had an interest in both markets for some time.
In Cambodia, the operator is the market leader in the mobile sector via its unit CamGSM, with an overwhelming 62.9% stake in the sector. The operator has a slightly weaker presence in the Laos market, but offers services of fixed-line (third-ranked with a 2.7% share), internet and mobile (No3 with a 12.1% stake).
Thailand-based Shinawatra operates CamShin, Cambodia’s second-ranked position with a market share of 18%. Another Thai-based company, Shenington has a strong presence in Laos. It not only has around 63.4% of the mobile sector, providing it with a dominant position, but it also dominates the fixed-line market with over 80% of the sector, a position it has enjoyed for some time. Telekom Malaysia, meanwhile retains a third-ranked operating presence via TMIC in the Cambodian mobile market, with a 14.2% share.
During 2009, we also expect greater presence from neighbouring Vietnam. Viettel, the country’s Ministry of Defence-run telecoms unit, received permission to offer mobile services in both the Cambodian and Laos markets. In the Cambodian market, the operator is expected to be joined by Taiwanese incumbent operator Chunghwa Telecom, while, in the Laos market, Viettel has already established operations and expects to attain around 1.5mn subscribers by YE10. Viettel’s Laos operation, Star Telecom Company (STC) is a joint venture with Laos Asia Telecommunications, which already has a 3.2% share of the Laos mobile market.
The Cambodian market has also attracted the attention of Russian companies. Cambodian operator Sotelco was acquired by Russian operator VimpelCom in July 2008 from Altimo at a cost of US$28mn for a 90% stake. VimpelCom has pledged around US$200mn to be spent in its Cambodian network in the first three to four years following its commercial launch. By December 2008, Sotelco had signed a contract with China’s Huawei Technologies to build a national GSM network over a five-year period.
High costs of internet connection mean that internet take-up is very low in both Cambodia and Laos. At the end of 2007, broadband penetration was under 0.1%. BMI fully expects this to grow to 0.2% in Cambodia and Laos by the end of the decade, driven by greater competition in the marketplace, reduced tariffs and cost of PCs and laptops.
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