Asia's Biggest Growth is Yet to Come

Strong economic growth, coupled with greater consumer spending power, saw a
positive growth in telecommunication services in the Asia-Pacific region,
according to a new report by International Telecommunication Union. The effects
of the 2001 global economic slowdown have been milder in this part of the world
and a ranking of the ten most profitable public  telecommunication
operators shows that seven originate in Asia.

ITU Asia-Pacific Telecommunication Indicators, released by ITU to coincide
with ITU TELECOM Asia 2002, reports that as a global player the Asia-Pacific
region distinguishes itself not only in size of its telecommunication market and
growth in teledensity but also in technology deployment, and the innovative and
flexible nature of its policy models.  In 2001, the region emerged as the
world's largest telecommunication  market, having added more than one new
telephone user every second for the last decade. The report observes that South
Asia, currently the least developed sub-region with a teledensity of 4 in 2001,
could provide the next great spurt of growth for the region as this is where the
potential for "catch-up" is greatest.

While Japan and the Republic of Korea continue to lead the world in
commercial deployment of 3G networks, small countries like Bhutan and Tonga have
also leapfrogged to leading edge technologies such as wireless LANs and all-IP
networks.  Singapore and Hong Kong, China withdrew exclusivity of their
operators' licenses in order to introduce competition in international services.
Likewise, Thailand and Vietnam found ways to introduce alternative suppliers and
foreign investment into their markets.

Mobile and Internet Economy

In the mobile economy, the Asia-Pacific region is poised to overtake Europe
as the world's largest market during 2002, although mobile penetration is still
below 10%. Two of the top three mobile economies worldwide, as measured by
mobile phones per capita, are from the region. They are Taiwan, China and Hong
Kong, China. The region also hosts the economies with the largest number of
mobile Internet users: Japan and Korea.

Mobile technologies also contributed to raising total teledensity
dramatically in many developing countries that might otherwise have expected
to remain locked into low levels of access. Thanks to mobile substitution, while
half the region's developing countries had a teledensity of less than one in
1993, this had been reduced to only two (Afghanistan and Myanmar) by
mid-2002.

The notion that restrictions on content would hinder Internet usage has
been disproved in Asia, as the region, with 160 million users, now accounts
for one-third of the total Internet users in the world, more than any other
region. Innovative schemes for community access, such as Indonesia's warung
internets or warnets, have boosted internet usage, as have prepaid cards and
the boom in online gaming and e-government.

Asia-Pacific also leads the world in broadband Internet with five Asian
economies among the top 12 worldwide in penetration. Related to this, capacity
on Internet bandwidth has leapt eightfold over the last two years from 8 Gbit/s
to 65 Gbit/s at the end of 2001.

"This region continues to push the envelope of universal service,"
says  Michael Minges, lead author of the report. "For those Asian
countries that  have crossed a threshold of 30 telephone subscribers per
100 inhabitants, the focus has shifted to providing service directly to the home
and on  keeping phone service affordable as cross-subsidies
disappear," he said.  According to co-author Tim Kelly, the region's
developing nations now have a much wider range of technical solutions for
extending access than at any  time in the past. These solutions include
mobile, satellite and  fixed-wireless access and well as traditional
copper-based networks. "The developing nations of Asia represent the real
test of the potential of mobile communications to extend access to
telecommunication services. We  know mobile phones are popular among the
urban rich; but will they also change the lives of the rural poor?" Kelly
said.  "Asia's success story is evident in its rapid strides towards
competition,  and its sustained growth in the face of regional, and then
global  challenges," said Hamadoun Touré, Director of ITU's
Telecommunication  Development Bureau. "However, the real reason for
confidence lies not so much in the numbers of telephone, mobile and Internet
subscribers in the  region, but rather, the digital opportunities
represented by the large  numbers of those still waiting to be
connected," Touré added.