Dtac thailand the thai telecom market in 2011 was

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Unformatted text preview: , reaching 126 million in 2011. The subscription growth was mainly driven by Uninor in India as well as Grameenphone in Bangladesh. DTAC – Thailand The Thai telecom market in 2011 was characterised by an increased demand for data and smartphones, boosted by the introduction of 3G services. At the end of 2011, around 15% of DTAC’s customer base were smartphone users. Revenues in local currency increased by 9% up to NOK 14.6 billion, mainly driven by subscription growth and smartphone demand. The EBITDA margin before other income and expenses was 34%, a slight decline from 2010. Higher revenues in 2011 were offset by increased revenue share fees to the concession owner CAT. Capital expenditure increased related to the build-out of 3G on the 850 MHz band, which was commercially launched in August 2011, and the ongoing network modernisation. DTAC is currently facing certain regulatory challenges. For further details, please refer to the section “Risk factors”. DiGi – Malaysia In 2011, the telecom market in Malaysia experienced high growth in data usage and an increased demand for smartphones and tablets. At the end of 2011, 20% of DiGi’s customer base were smartphone users. In spite of acquiring a 3G licence later than its two main competitors, DiGi has during 2011 managed to capture a significant portion of data revenues. Revenues in local currency increased by 10% up to NOK 10.9 billion, driven by higher demand for mobile data, growth in handset revenues and a larger subscription base. The EBITDA margin before other income and expenses increased by 2 percentage points reaching 46%, as a result of higher revenues and cost efficiency measures. Capital expenditure decreased somewhat and was mainly related to further site roll-out and increased capacity as well as the ongoing network modernisation. Grameenphone – Bangladesh With real mobile penetration estimated at 35%, there is still a large untapped potential for future growth of telecom in Bangladesh, as well as basic voice services, by reaching a larger share of the rural population. The growing share of customers coming from lower income segments, however, is diluting average revenues per user. The smartphone penetration is estimated to be below 5%. Grameenphone increased its revenues in local currency by 19% up to NOK 6.7 billion, driven by continued strong subscription growth, in particular in rural areas. The EBITDA margin before other income and expenses increased by 4 percentage points to 53%, as a result of revenue growth and lower subscription acquisition cost, following a reduction in SIM tax effective from June 2011. Capital expenditure increased significantly as a result of the ongoing network modernisation and capacity investments to align with subscription growth and traffic volumes. In Bangladesh, Grameenphone’s 2G licence and spectrum expired in November 2011. The renewal decision has not been finalised as some issues around the licence renewal are pending before the court. Thus, the final conditions for renewal are still unclear. Pakistan In 2011, total revenues in local currency increased by 18% up to NOK 5.0 billion, mainly due to growth in subscriptions and a 3% increase in revenue per user. Telenor introduced mobile financial services in Pakistan in October 2009 and now offers a broad range of services, reaching a growing share of the un-banked population of Pakistan. Revenues from financial services contributed with approximately 2 percentage points to the overall revenue growth. The EBITDA margin before other income and expenses increased by 7 percentage points to 37%. The margin improvement was a result of continued subscription growth and improved contribution margin driven by decommissioning of leased lines. Capital expenditure decreased slightly awaiting the upcoming network modernisation. In spite of a very challenging political and security situation, the telecom business in Pakistan continues to grow and mature. In early 2012, the Pakistani authorities announced their intention to arrange a 3G auction at the end of March 2012, this has however been further postponed. The smartphone penetration is estimated to be below 5%. /page 09/ telenor annual report 2011 report from the board of directors 2011 Uninor – India Uninor has captured a substantial share of the net additions and is focused on bringing affordable voice services to the Indian mass market by operating an ultra low cost model. Uninor continued the strong subscriber growth trend from 2010 and reported 28 million subscriptions by the end of 2011, more than twice the number from 2010. Services were available in 13 telecom circles. Revenues were NOK 3 billion and the EBITDA loss was NOK 3.4 billion, a reduction of NOK 0.8 billion from 2010. Capital expenditures were reduced by NOK 0.7 billion to NOK 1.0 billion. In the second half of 2011, the incumbent operators have increased their tariffs, although this has not yet impacted the rate per minute and the competition is still intense. On 2 February 2012, the Supreme Court of India delivered its judgment on a public int...
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