Eurasian - Central Asian
telecommunications market overview
Mobile Eurasia 2007: Telecoms Centre of Gravity Shifts Southwards and Eastwards
Imagine drawing a large oval shape on a map of the world. It is meant to encompass the new centre of gravity for global business, the telecoms industry included. Within the line are the most exciting growth opportunities presented by growing economies, young populations, a hunger for connectivity and evolution towards an information society. To the northwest, the shape extends as far as Moscow. To the east it reaches China; to the south, the Indian subcontinent. In the south-western quadrant of this ovoid is Istanbul, the venue for this year's Mobile Eurasia event, held March 13-14.
A diagram very much like this was shown in a conference hall packed with delegates from countries across that southwester quadrant, including Turkey, Azerbaijan, Georgia, Iran, Mongolia, Kazakhstan, Kyrgyzstan, Uzbekistan, Afghanistan and Tajikistan. How do you find a label to describe this disparate group of states? The mix of histories, political systems and cultures is very diverse. TeliaSonera, a major investor in the telecoms markets of this part of the world, has selected the politically neutral term 'Eurasia' to describe its operations here. Informa Telecoms & Media was pleased to follow the TeliaSonera lead when seeking to assemble the cream of the region's cellular industry leaders, rebranding the former 'Mobile Central Asia' event. It was therefore very fitting that Erdal Durukan, the President of TeliaSonera Eurasia was on-site to deliver an inspiring Keynote Address, describing how the group has grown successful mobile business from Russia and Turkey in 1994 to more recent activities in Georgia, Azerbaijan and Kazakhstan. This was followed by an address from Turkcell Chief Investment Officer, Tulin Karabuk, welcoming visitors to the host country and outlining how her company has capitalised on the rapid growth of the local market. Mobile penetration in Turkey is at a level that allows for further growth opportunities, but which far outstrips the penetration rates of the other states in the region. Delegates from beyond Turkey will certainly have found much inspiration from the Turkcell example and Ms Karabuk was keen to assert that the Mobile Eurasia conference offers a valuable opportunity to exchange ideas and make progress as further subscribers are acquired and new challenges arise.
TeliaSonera and Turkcell are by no means the only significant investors into this part of the world. Informa analyst Gemma Bunting reminded delegates of the growing influence of all of the big three Russian MNOs now expanding their footprints into the wider CIS, albeit at different speeds. Vimpelcom has moved fastest and delegates gained from the opportunity to hear from and meet with Sergey Avdeev, who holds the Vimpelcom CTO role as well as managing the company's CIS operations. Mr Avdeev was joined by his colleague Evgeniy Ruban, General Director of one such operation, Beeline Uzbekistan, who described competing in a market where coverage economics are very challenging. MTS, Russia's market leading operator, were represented by a team from their own Uzbek business unit, who were able to share insights around how to stimulate the take-up of value-added services. This was a common theme for discussions throughout the two days. Where income inequality means that a free-spending population segment exists even in markets typified by generally low (and declining!) ARPU, it is crucial to lock in this higher value segment with compelling services.
Another significant presence in Central Asia is that of MCT Corp. of the USA, represented at Mobile Eurasia 2007 by Masour Khomidov, COO of one of their two operators in Tajikistan, a market made very challenging by economic conditions and physical geography.
It might surprise some industry watchers to learn that Tajikistan is one of two markets in the region where 3G licenses have been issued. Georgia is another such case and delegates were keen to direct questions towards David Lee, CEO of market leading MagtiCom. Mr Lee spoke about the challenges of rolling out a full range of services from video calling and high-speed mobile internet access to mobile TV. Further operator CEOs in attendance included Bakcell's Martin Quirke (Azerbaijan), Ufone's Mubashir Naqvi (Pakistan), Mobicom's Fumiaki Shiga (Mongolia) and Tacom's Igor Palugin (Tajikistan). This was an unprecedented line up of mobile industry leaders from this region and many more companies were represented by other levels of managements. With delegate numbers having grown over 100% vs. the 2006 Central Asia event in Almaty, Kazakhstan, Mobile Eurasia is growing strongly in step with the service providers of Central Asia and the Caspian. We look forward to welcoming an even larger and more diverse group to Istanbul in 2008.
