Friday, 31 July 2009

Research and Markets: Cambodia Telecoms Market Describes the Regulatory Environment in Cambodia

Business Wire

July 30, 2009

DUBLIN--
(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/1bba8a/cambodia_telecoms) has announced the addition of the "Cambodia Telecoms Market" report to their offering.

A report describing Cambodia's telecoms market covering recent developments in the mobile, fixed and Internet sectors (including broadband and Wimax), and a overview of the regulatory scene

This report reviews the situation in Cambodia, looks at the country's economic prospects, and analyses the current telecoms market and its likely future direction. The report also describes the regulatory environment in Cambodia. In summary, our findings are that although Cambodia has been impacted by the global economic slowdown, the country had enjoyed four years of double digit economic growth and in the future may benefit from recently discovered offshore oil and gas.

This economic growth has helped to fuel the take up of mobile communications. There is a real risk, however, that the mobile market is becoming too crowded with the government licensing a number of new operators in 2007 and 2008. Whereas until recently there were only three GSM operators, there are now a total of nine players (eight GSM and WCDMA, and one CDMA 2000) in the market as of June 2009. There may be at least a further four unused licences.

Fixed and broadband network development has not matched this rapid growth of mobile. The fixed network penetration remains amongst the lowest in the world, and there are very few broadband connections. Telecom Cambodia (TC), the Government owned fixed network operator, depends on revenues from international services and expects to derive further revenue by acting as a transit point for all inter-operator traffic in Cambodia. The underdeveloped broadband market presents an opportunity that some foreign and local companies are now beginning to explore by acquiring WiMAX licences. As is the case with mobile services, there are a large number of companies that have received licences, some of which may have overlapping spectrum allocations.

The report concludes by reviewing options for effective market entry. M&A activity is on the increase in Cambodia's telecoms market and this appears to be the most effective method of entering the market at present. Greenfield start ups are not now recommended at this stage of the country's development.

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