2009 Asian - Internet Market

Report Cover Image

Last updated: 23 Dec 2009 Update History

Report Status: Archived

Report Pages: 240

Analyst: Paul Budde

Publication Overview

This market report provides a comprehensive overview of the Internet segment of the market across the various economies of Asia. The overview naturally includes a look at the broadband segment within these markets.

 

Researchers:- Peter Evans and Lisa Hulme-Jones

Current publication date:- December 2009 (6th Edition)

Next publication date:- December 2010

Executive Summary

While there is considerable activity in the Internet and online markets across the region, the market in Asia continues to be dominated by the big players of North Asia, (South Korea, Japan, Hong Kong, etc), with a significant role also being played by some of the South East Asian countries (Singapore, Malaysia, etc). Of course, in terms of sheer Internet user numbers, China (300 million) and India (95 million) maintain a real presence, despite their modest user penetration figures. Notably, China surpassed the US in 2008 to become the largest nation of Internet users in the world and by end 2009 was showing no signs of slowing down.

 

In fact as highlighted in the table below, the Asian Internet market can be broken into three user penetration groups. The top group includes the more highly penetrated markets in terms of users and subscribers. They also tend to have sophisticated and extensive broadband access facilities in place. Typically we find that countries from this group are among the global leaders in broadband Internet. South Korea, with a user penetration of over 77%, leads the regional market with a broadband subscriber penetration of 32%. Closely following in second place is Hong Kong with a 75% user penetration and 28% broadband subscriber penetration. The countries in this top grouping are characterised by their start of the art national infrastructure and, most importantly, strong regulatory support for expansion of telecom and IT services.

 

The countries in the second band – roughly between 10% and 30% user penetration – are to be found in expansion mode when it comes to their Internet market segments. But there is a clear gap (almost 20%) to be bridged before they can be counted in the top grouping. China has jumped from 16% penetration in 2007 to 23% by mid-2009; however, its broadband penetration is still languishing around the 5% mark. Thailand and Vietnam (both with 26% user penetration) play lead roles in this middle grouping. We typically find that in the last few years both operators and governments have started to give priority to expanding Internet access and speed in these countries. Indonesia has moved strongly into this group, overcoming major infrastructure challenges to provide Internet to its citizens; its 14% penetration represents a very significant 33 million users.

 

In the third grouping – those markets with a user penetration of less than 10% - we tend to find those countries that, for whatever reason, have not yet ‘got their act together’ when it comes to Internet. Of course, some are performing relatively well under difficult circumstances. The war-ravaged Afghanistan is managing 2% user penetration under extremely difficult circumstances. Then there is the tiny fledgling nation of Timor Leste (East Timor), which has continued to struggle with political instability as it attempts to build its national infrastructure. At the bottom end of the Internet scale in Asia, however, we find a number of countries that are simply struggling with poor telecom infrastructure and generally underdeveloped regulatory regimes. Included amongst these are Nepal, Turkmenistan, Cambodia, Tajikistan, Bangladesh and Myanmar.

 

Internet penetration and users in Asia by country – ranked by user penetration - June 2009

Country

Internet user penetration (%)

Internet users (thousand)

South Korea

77%

36,800

Hong Kong

75%

5,250

Singapore

75%

3,600

Japan

74%

94,000

Taiwan

68%

15,800

Macau

62%

340

Brunei Darussalam

58%

240

Malaysia

57%

15,300

Azerbaijan

41%

3,500

Maldives

27%

80

Georgia

27%

1,100

Thailand

26%

17,500

Vietnam

26%

22,500

China

23%

298,000

Kyrgyzstan

17%

900

Kazakhstan

16%

2,500

Indonesia

14%

33,000

Mongolia

13%

400

Pakistan

11%

19,000

Uzbekistan

10%

2,800

Tajikistan

10%

650

India

8%

95,000

Sri Lanka

7%

1,400

Armenia

6%

200

Bhutan

6%

40

Philippines

6%

5,800

Laos

5%

300

Afghanistan

2%

500

Nepal

2%

550

Turkmenistan

1%

80

Cambodia

0.5%

80

Bangladesh

0.4%

600

East Timor

0.2%

2

Myanmar

0.2%

120

(Source: BuddeComm based on industry data)

 

Top 10 broadband markets in Asia – ranked by subscriber penetration – June 2009

Country

Broadband subscriber penetration (%)

South Korea

32

Hong Kong

28

Japan

24

Macau

23

Singapore

24

Taiwan

22

Malaysia

8

China

5

Kazakhstan

5

Brunei Darussalam

3

(Source: BuddeComm based on industry data)

 

Note: Users are those accessing the Internet from school, university, cybercafes, work accounts as well as from individual household or business accounts. Subscribers are the number of individual paid Internet access accounts, eg a work account is just one subscription but can have many users within that one subscription.

 

Data in this report is the latest available at the time of preparation and may not be for the current year.

Related Reports

Share this Report

Purchase with Confidence

As you know, I have resigned from the Labor Ministry and have decided not to re-contest the seat of Charlton at the next election – both for personal reasons.

Before leaving Parliament, I particularly wish to record my thanks to you for your generous and constructive participation in the deliberations that generated significant economic policy reforms for the Australian community. Continuous economic transformation is a key challenge that faces all Governments.

The development of sound public policy should always be contestable. Ultimately, good and equitable outcomes are not concessions to any particular interest group, but the careful balancing of interests to create the greatest possible benefit for the nation. You have contributed to that, and I sincerely thank you for it.

Greg Combet, Former Minister for Climate Change, Industry and Innovation

Research Methodology

BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.

For more details, please see:


Research Methodology

Sample Reports

A selection of downloadable samples from our Annual Publications catalogue.


Download a Sample Report

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Custom Research Service?

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to Paul's FREE weekly News & Views.