Ericsson to Invest Further in Southeast Asia

Swedish telecom giant Ericsson expressed on Wednesday, June 20 at the event, CommunicAsia in Singapore, to invest further in Southeast Asia, particularly Vietnam, due to strong growth in mobile usage
The company, which defined Southeast Asia to include Bangladesh as well, said two-thirds of the region’s population still does not own a mobile device of any kind which means there is demand for such services.
“In Southeast Asia, including Bangladesh, we are seeing the mobile penetration increasingly growing especially in the low ARPU market at 5.5 million subscribers,” said Jan Signell, president for Southeast Asia. An estimated 66 percent of people in the region are not connected by mobile, he said at a media briefing held at the sidelines of CommunicAsia in Singapore.
ARPU is the acronym for average revenue per user and it is a widely used term in the telecom industry to measure how successful an operator is in maximizing the earnings potential from its subscriber base.
According to Signell, the bulk of the mobile growth in Southeast Asia will come from the lower income segment where the ARPU is five U.S. dollars or lower.
“Ericsson believes that future revenue and subscriber growth will be from this segment of population and that Vietnam and Bangladesh are two countries in the region that are growing exceptionally well,” said Signell.

“It’s really really high growth going in Vietnam,” he said, displaying computer slides that show the communist country has just a mobile penetration rate of 21 percent out of a population of above 85 million.