Telecom Flat World?

19 06 2009

Earlier when I posted a blog “Go Global Telecom..!” I had a perspective in my writings. If you said world is flat, then you shouldn’t have missed this simple fact. By flat world, I simply mean ignoring Asia-Pacific or emerging markets could be fatal in future! Whosoever you are! Ok! Let me justify the same.

Recent research report by Telegeography paints bleak future for some of the world’s mighty telecom giants. Perhaps, the rise of Huawei & ZTE symbolizes the fact that, emerging economies will be hosting the center stage of world telecom developments in coming years. The report shows the sharp declines in the revenue & growth for mighty ten. Look at the stats below.

These ten saw the quarterly revenue decline by 4% y-o-y(in local currencies), with Sprint-Nextel posting 12% drop. One prominent reason for the decline; almost all of these companies have focused on developed markets only, which are already saturated. Or in other words none of them operates in India or China. These stats are exactly opposite to those of China Mobile, Vodafone, America Movil, China Unicom etc where all these companies reported Q1-09 revenues at least 10% more than Q1-08.

Voda has benefited by stronger growth report card in India. While other Indian telecom giant Bharti Airtel is looking for consolidation with South African MTN, we could only see the telecom revolution (revenue market) is turning away from developed world to developing world. Indeed this is the most vivid proof that World is Flat! Isn’t it?

(For further details check: www.telegeography.com/products/gcomms_insight/index.php )

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