Emerging markets remain a source of profit for many of the world’s largest telcos, according to global telecoms, media and IT adviser Analysys Mason’s recent report "Worldwide telecoms market share report 2009", which evaluated the financial and operational performance of more than 100 operators worldwide.

According to Roz Roseboro, principal analyst at Analysys Mason and author of the report, revenue growth in emerging markets continued to fare better than in mature markets. Also, many large operators with exposure to emerging markets realized higher EBITDA margins than their peers without such exposure.

“Industry watchers should consider exposure to growth markets when evaluating the growth potential of large, Tier 1 operators,” said Roseboro in a statement.

Emerging markets achieved higher GDP growth in 2009 than mature markets, so consumers in these markets had a greater ability to pay for telecoms services, a situation Analysys Mason says will continue.

“We expect mature markets to remain challenging, so operators will be well-served to have a position in dynamic growth markets,” she added. "Still, emerging markets are not without their challenges. “The business environments in emerging economies are prone to volatility, and many are becoming extremely competitive, so operators must vigilantly manage their costs, and develop innovative business models in order to profitably maximize the opportunity.”

The Daily


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