1. China and SE Asia China - Bill Harding & Glen Heller
Philippines - Marcelino Racoma
Indonesia - Riandy Hendrawan
Thailand - Russ McGuire

2. China

3. Environment Population: 1,246,871,951 4th Largest Nation
Literacy Rate: 81.5%
Move from centrally planned economy to market-oriented
Within framework of Communist party

4. Economy Quadrupling of GDP since 1978 GDP per capita: $3,460
Opening up to foreign trade and investment
Major trade partners: Honk Kong, U.S., Japan, South Korea, Germany

5. Role of Telecom Growth of telecom instrumental to economic development
China’s Strategy
Import of technologies
Establishment of joint ventures
Domestic development
Technology transfer for access to market
Buy local policy

6. The Players Local providers: China Telecom, China Unicom
Joint ventures
Beijing Nokia, Beijing Ericsson
Fierce competition in mobile market
Motorola, Ericsson, Nokia, Nortel
Japan’s NEC providing advanced trunk telecom network

7. Infrastructure One of most dynamic markets in world
112 million telephones at end of 1998
87 million fixed line, 25 million mobile
Growth rate in 1998
24% fixed line, 88% mobile
Telecom service sector growing at 48% annual clip

8. Teledensity

9. Mobile System 25 million users, third largest in world
60% of telecom investment to cellular market
Cellular penetration 2%
Key users are business people and young people
Design important

10. Transmission Media Interprovincial fiber-optic trunk lines
Cellular systems
Domestic satellite system
International satellite system
Fiber-optic links to Asia countries
Buildout of broadband

11. Use of Internet 324% growth in 1999 75.6% under 30 years old, 79% male
50% access from home, 37% access from school or work
Government pushing development
20 million people access by 2003

12. Opportunities/Threats for Foreign Companies
Low penetration
Need for advanced technologies
Increasing government investment
Threats
Aggressive domestic manufacturers
Buy local policy
Technology transfer for market share

13. Telecom Standards Total Access Communication System-
European Standard est in 1987
Analog cellular telecom network
Analog sales have slumped since ‘94 as users move towards GSM networks
Global Systems Mobil (GSM)
Began in ‘94 when Unicom established
Provided nations first digital GSM network

14. More Standards Code Division Multiple Access (CDMA)
4 international companies are currently allowed to operate pilot projects with this technology in 4 chinese cities, Lucent in Guangzhou, Motorola in Beijing, Nortel in Xi’an and Samsung in Shanghai
Despite success China’s Ministry of Information Industry has not allowed the commercial deployment of CDMA in China

15. Providers of Local and Global Telecom
China Telecom - run by Ministry of Information Industries
Provincial subsidiaries
Guangdong Telecom-largest telecom operator in China
Guandong is the most affluent and technologically advanced in China
Beginning to rival AT+T as the largest provider of telecommunications services in the world

16. Local + Global Providers
China Unicom - domestic rival to China Telecom
More flexible and customer oriented however reliability is often questioned
Only have 5% of national market

17. Local + Global Players Ji Tong Communications
Niche player - building a nationwide backbone
Links networks belonging to government ministries, universities, research institutes and state owned organizations as part of a value added network (VAN)

18. Government Regulation
As of ‘97 meeting of Ninth Party Congress changed who was in charge of telecom policy
March ‘98 the Ministry of Post and Telecom (MPT), Ministry of Electronics Industry (MEI), and parts of the ministries handling aerospace and radio and TV were merged to create the Ministry of Information Industries (MII)

19. Partnerships for Advancement
Post + Telecom Administrations (PTA’s)
Wary of foreign investment
There is realization though that foreign products and technology are needed in order to allow local companies to participate in the global information age
Fuels desire for joint ventures with technology transfer

20. Policy Liberalization
Developing communications infrastructure
Leaders in MII concede that it may take 20 yrs before domestic companies catch up with the world
Feared that the Ministry may do more to close the market and protect Chinese companies rather than liberalize policies

21. China’s Foreign Investment Laws
Preference given to sourcing locally
Products produced by joint ventures in China must contain 60% local content in order to qualify as domestic products

22. Future role of Telecom China as a B2B, B2C player
Country in general suffers from a dearth of PC’s which is seen as a huge potential stumbling block
Only 10% of large and medium sized Chinese firms are now online
However, most Chinese business people carry a mobile or a pager
Planning a system which could send B2B purchase inquiries via mobile devices to 2 m manufacturers

23. Growth Internet use grew at 324% in 1999
In ‘98 there were 2.1 m users, by the end of ‘99 there were 8.9m
Chinese government expects that over 20m people will have internet access in the country by 2003

24. The Philippines

25. Background Archipelago consisting of over 7,100 islands and islets
Includes over 50 ethnic groups of Spanish, Malay, and Chinese descent
Mountainous with narrow to extensive coastal lowlands

26. Social, Political, and Economic Environment
Struggle to regain independence and freedoms
Unitarian Republic with strong return to democracy
Improving the overall economy

27. Technological Infrastructure
Teledensity 4.6 per 100 persons, increase of 3% from 1995
Development of the the Philippine Information Infrastructure (PII)
Turn the Philippines into the Knowledge Center of Asia within the first decade of the 21st century

28. TeleCom Standards and Service Providers
Department of Transportation and Communications (DOTC)
National Telecommunication Commission (NTC)
Philippine Long Distance Telephone Company (PLDT)

29. Gov Regulation and Private Partnerships
Membership in the ITU and ISO
Oracle Academic Initiative
RPWEB

30. Future Role of Telecommunications
Deregulation and privatization
Satellite competition
Philippine IT City

31. Indonesia Telecommunications

32. Map

33. Social Estimated Population : 220 million Literacy rate : 83.8%
Religion : 88% Islam, 10% Christian,
& 2% others

34. Economic Agricultural industry Some high technology industry
1997-present: economic crisis
- unhealthy banking sectors
- untenable levels of private foreign debt
- uncompetitive business practices

35. Telecommunications Infrastructure
Telephone :
- 25 per 1000 people
- Domestic : fixed wireline, microwave
- International : fiber optic submarine
cable, satellite
Mobile phone :
- 5 per 1000
- Global System for Mobile (GSM)

36. Telecommunication Infrastructure
- Advanced Mobile Phone System (AMPS)
- Nordic Mobile Telecommunications (NMT450)
Paging
- 700,000 subscribers
Satellite
- Coverage of most Asia and some
Australia & New Zealand

37. Telecommunication Infrastructure
Internet
- First available in 1995
- Dial-up 56 Kbps, ISDN, cable modem
- Active providers: 30
- 250,000 subscribers
- PC’s owner : 8 per 1000 people

38. Service Providers Domestic wireline (monopoly) - Telkom Indonesia: gov
Domestic wireless (duopoly)
- Telkom & Ratelindo: private
International Gateway (duopoly)
- Indosat: gov
- Satelindo: private

39. Cellular Providers GSM - Telkomsel, Satelindo, Excelcomindo NMT-450
- Mobisel
AMPS
- Komselindo, Metrosel, Telesera

40. Government Regulations
Ministry of Tourism Art and Culture
- Directorate of Post & Telecommunications
Telkom Indonesia remain for domestic and domestic long distance
Deregulation
- Privatization Telkom (domestic) &
Indosat (int’l)
- Competition for other telecom markets

41. Future Role Potential market Improve business sector & education
Dilemma facing economic crisis
Modernize Infrastructure
- establish backbone to connect all
islands
- telephone line, wireless, internet

42. Thailand Telecommunications
MAP

44. Social, Political and Economic Environment
Geography
514,000 square kilometers
Tropical climate
Borders Burma, Laos, Cambodia and Malaysia
Population
60,000,000
94% literacy rate
35% domestic savings rate

45. Economic Environment Government Economy GDP $119 billion
constitutional monarchy
very progressive since 1800’s
Economy
one of the most advanced in SE Asia, but the devaluation of the baht triggered a financial crisis in 1997
current 2% economic growth rate 1999
service and export oriented
GDP $119 billion

46. Technological Infrastructure
Domestic Teledensity
5 per 100 teledensity- 7,400,000 lines
Current Surplus of Lines waiting list
Good coverage to rural areas
4.5 million urban lines
2.9 million rural lines
671.6 million domestic calls
86 million international calls

47. Technological Infrastructure
Under the MOTC the TOT and CAT have provided traditional line services
Thailand has latest technology in value added services through license agreements
Full government support
E-commerce and Internet growth

48. Telecommunications Standards and Protocols and Service Providers
TOT and CAT retain domestic line monopolies set standards
Liberalization through licensing and partnerships using new frequencies
Example: Telecom Asia (a NYNEX joint venture) and Thai Telephone and Telecom have the contract for the additional 3 million lines

49. Telecommunication Service Providers
Value Added Services
licensees for paging, cellular, PCS,data/voice operators,fiber optics
Shinawatra owns majority of cellular, paging and broadcasting licenses
Thaicom 1 and 2 launched in early 1990’s by Shinawatra provide satellite services

50. Governmental Regulation and Private Partnerships
MOTC
Ministry of Transport and Communications
PTD
Post and Telegraph Department
TOT
Telecommunications Authority of Thailand
CAT
Communications Authority of Thailand

51. Future Role of Telecommunications in Thailand
Positive outlook as economy improves
Telecom projected to grow faster than GDP
Progressive government policy benefits both Thai citizens and businesses
Build Transfer Operate (BTO) policy
Licensing agreements
Internet and E-commerce