Wireless growth likely to drive global telecom industry performance
<<Friday, June 04, 2004 8:42:41 AM ET
Merrill Lynch
LONDON, June 4 (New Ratings) – Analysts at Merrill Growth expect the performance of the global telecommunications industry to be driven by continuous subscriber base expansion and handset sales growth in the wireless segment.
According to Merrill Lynch’s research note published this morning, growth in the number of wireless subscribers continues to exceed expectations. Global net subscriber additions during 2003 stood at 223 million, the analysts add.
Wireless growth is expected to be driven by the increasing number of new subscribers in the emerging markets, which at present account for over 50% of the global mobile subscribers, the analysts mention. Basic mobile services are set to expand in the emerging markets due to reduced handset prices, the increased availability of low cost refurbished handsets and the introduction of micro prepaid concept, according to Merrill Lynch. Emerging markets at present account for 80% of the global net wireless additions, the analysts mention.
The estimates for net subscriber additions for 2004 and 2005 have been raised from 182 million to 232 million and from 162 million to 199 million, respectively. Handset shipment estimates for 2004 and 2005 have been raised from 572 million to 602 million and from 615 million to 658 million, respectively.>>
No hint of a "slump" here through 2005.
Don |
