Abstract
Despite its status as a least developed country and remaining one of the
poorer countries in Southeast Asia, Cambodia' s efforts to expand and upgrade
its telecom infrastructure are bearing fruit. There was very little
infrastructure remaining from before the tumultuous Khmer Rouge days. As a
result, Cambodia bypassed rebuilding the fixed-line market and quickly
launched into alternative technologies, jump-starting its telecommunications
infrastructure with digital technology. Not surprisingly, mobile services have
completely overwhelmed the market. By early 2009, there were nine mobile
operators vigorously competing with each other in a market segment that was
growing at an annual rate of more than 50%. There were 4.3 million mobile
subscribers (penetration 29%) in the country by March 2009. The market was
still in a very strong growth phase, as evidenced by the keenness shown by
foreign operators seeking to be part of it.
Some limited fixed-line growth had earlier come about through investment under
foreign assistance, but this has mainly benefited Phnom Penh and geographical
coverage has not increased significantly since that effort in the 1990s. The
number of fixed-line services was relatively static at around 40,000 by 2008.
In the absence of any real fixed-line growth, mobile telephone services
continue to completely dominate the overall telecom market in Cambodia, with
mobiles representing more than 99% of the total number of telephone services
in the country. This disparity has been growing more significant each year.
The expansion of Internet services has also been overshadowed by the mobile
phenomenon. In fact Internet take-up remains disturbingly low, one of the
lowest penetrations in the region. Of course, the limited fixed line
infrastructure has been a major inhibiting factor in the roll-out of both
dial-up and ADSL Internet services. One encouraging feature has been the
general availability of Internet access in provincial towns.
It is worthwhile noting that wireless technology has been especially
advantageous for Cambodia in achieving rapid network rollout and replacement
of a fixed network badly damaged by 20 years of war. In addition to the
thriving mobile networks, Wireless Local Loop has been useful for rapid
provision of a limited number of fixed-line services. However, while Cambodia
has exemplified the fact that WLL offers a viable option for rapidly expanding
telecom access in developing countries with low levels of fixed
infrastructure, the potential of this technology has yet to be fully exploited
in the country.
Key highlights:
- The year 2008 saw Cambodia' s mobile market continue on its positive
expansion path, with annual growth of 56% for the year and continuing at 50%+
into 2009;
- With 29% mobile penetration by March 2009, the mobile market had passed
the 4 million subscriber milestone earlier in 2009;
- With 3 new mobile operators coming to the market in 2008/09, Cambodia has
a total of 9 operators in what has become a crowded and highly competitive
market;
- The development of fixed-line and Internet services continue to languish;
the latter is particularly disconcerting as online access is crucial to
national growth;
- On the broader political front, National Assembly elections were held in
2008, with Hun Sen being returned to power; while the elections were generally
regarded as credible, deficiencies remain.
This report provides an overview of the trends and developments in the
telecommunications markets in Cambodia.
Subjects covered include:
- Key Statistics;
- Market and Industry Overviews;
- Major Operators (Mobile and Fixed)
- Regulatory Environment;
- Infrastructure;
- Mobile Market;
- Internet Market;
Telecom market forecasts for selective years to 2018.
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