Mapping the Southeast Asian Telecommunications Service Industry using the Porter s Five Forces Analysis
Mapping the Southeast Asian Telecommunications Service Industry using the
Porter’s Five Forces Analysis
The telecommunication industry offers a diverse set of products which includes Mobile Voice calling &
Messaging, Mobile data, fixed voice calling, fixed broadband, satellite & IP TV, Mobile money etc. The major players in the Southeast Asian telecom industry (Singtel, Axiata, Telenor, Hutchison etc.) are facing a number of challenges .Emergence of Over The Top (OTT) communication tools poses a big threat on the industry by eating into the core revenue streams of the industry. The competitive rivalry is intensifying as more & more countries are adopting Mobile Number Portability (MNP), the players are competing to win customers by offering attractive packages over the other. This has resulted in significant reductions in the Average Revenue Per User (ARPU) in the region. These factors are giving increased bargaining power to the customers while dragging down the attractiveness of the industry as a whole. However with the emergence of technologies such as Cloud computing, Near Field
Communication (NFC) the global as well as regional positive outlook on the demand for data points out that more & more data consuming devices are getting integrated with human life at a rapid phase. It is considered that Data is the next driving force of the Industry with a CAGR of 76% in data consumption from 2012-2017 in the Asia Pacific region. Furthermore with roughly 10% of world population Southeast
Asia looks like an attractive target for Global Telecom operators. This increases the threat of new entry into the region. Along with these developments continuous technological advancements keep on adding new services to the industry, making it a very dynamic business environment.
Rivalry among existing competition – High
The competition among the players in the region is very intense due to a number of reasons. The industry growth is very slow as many markets in the region
Porter’s Five Forces Analysis
The telecommunication industry offers a diverse set of products which includes Mobile Voice calling &
Messaging, Mobile data, fixed voice calling, fixed broadband, satellite & IP TV, Mobile money etc. The major players in the Southeast Asian telecom industry (Singtel, Axiata, Telenor, Hutchison etc.) are facing a number of challenges .Emergence of Over The Top (OTT) communication tools poses a big threat on the industry by eating into the core revenue streams of the industry. The competitive rivalry is intensifying as more & more countries are adopting Mobile Number Portability (MNP), the players are competing to win customers by offering attractive packages over the other. This has resulted in significant reductions in the Average Revenue Per User (ARPU) in the region. These factors are giving increased bargaining power to the customers while dragging down the attractiveness of the industry as a whole. However with the emergence of technologies such as Cloud computing, Near Field
Communication (NFC) the global as well as regional positive outlook on the demand for data points out that more & more data consuming devices are getting integrated with human life at a rapid phase. It is considered that Data is the next driving force of the Industry with a CAGR of 76% in data consumption from 2012-2017 in the Asia Pacific region. Furthermore with roughly 10% of world population Southeast
Asia looks like an attractive target for Global Telecom operators. This increases the threat of new entry into the region. Along with these developments continuous technological advancements keep on adding new services to the industry, making it a very dynamic business environment.
Rivalry among existing competition – High
The competition among the players in the region is very intense due to a number of reasons. The industry growth is very slow as many markets in the region