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Market Driver |
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The adoption of prepaid mobile is accelerating the
mobile telecommunications industry in Asia with most
of the growth over the next 3 years coming from emerging
markets like e-pay’s Markets which include Malaysia,
Pakistan, Thailand and China. Out of every
10 new mobile users, 8 of them will be pre-paid. Some
of the key growth drivers of Asia’s prepaid mobile
market in Asia are: |
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cheaper handsets; |
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cheaper airtime; |
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the popularity of SMS; |
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ease of access; |
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Asian culture prefers baying cash; |
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lower penetration of credit cards; |
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the lack of available fixed-line infrastructure; |
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For many new customers pre-paid represents the only
viable means of subscribing to a mobile phone service.
Although growing dramatically, the prepaid segment of
the mobile phone industry remains underdeveloped in
many emerging markets. Even among the affluent, prepaid
airtime is becoming more popular, particularly as heads
of household set up new accounts for their children. |
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Market Size |
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Asia has the fastest growing mobile telecommunication
industry in the world and the highest penetration of
prepaid users. The Group is presently operating in Malaysia,
Pakistan and Thailand (“Current Markets”)
and plans to expand into China and India (“New Markets” and collectively
known as “Market”) |
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Key statistics of e-pay’s Market:
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The 3 countries in e-pay’s Current Markets has
a combined population of 259 million people; |
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Pre-paid represents 80% of all existing and
new mobile users for the next 5 years; |
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The average revenue per user per annum (ARPU)
is about A$11; |
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Current Markets |
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e-pay’s Current Markets consist of 3 countries
being Malaysia, Pakistan and Thailand. |
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$=AUD |
Malaysia
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Pakistan
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Thailand
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2006 Population
of country
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27.4m
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165.6m
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66m
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Total no.
of mobile users in 2006 |
19.2m |
21.8m |
37.7m |
Av. Growth
rate mobile sector next 5 yrs |
5.5% |
22.7% |
8.36% |
Pre-paid
mobile penetration in 2006 |
81% |
96.2% |
87.8% |
Total no.
of pre-paid mobile users in 2006 |
15.5m |
20.9m |
33.1m |
Average
Revenue Per User (ARPU) |
$18 |
$15 |
$12 |
Revenue
Market Size in 2006 |
$3.3b |
$3.8b |
$4.4b |
Business
start date for e-pay |
1999 |
2004 |
2005 |
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(source: Frost & Sullivan) |
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Barriers to Entry |
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e-pay Asia believe that the combination of the following
factors set considerable barriers for e-pay’s
competitors: |
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an established, large scale regional infrastructure; |
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distribution agreements with most mobile operators; |
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established and growing distribution channel
of Retail Agents; |
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dominant and leading market share in two countries; |
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regional coverage and strong retail partnerships; |
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technological offering requiring many years
development; |
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proven technology platforms and systems; |
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quality service; |
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recognised brand presence; |
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competitive pricing; |
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