Joy for Asia Pacific telcos in 2Q 2021

Summary

Asia Pacific telecom operators posted a notably stronger second quarter in 2021, with the performance of 39 operators across the region revealing what's driving the recovery after a comparatively weak prior year. Revenue, earnings, capital spending, and average revenue per user trends together build a fuller picture of where telecom growth is concentrated across the region's diverse markets.

Certain markets and operators are leading the rebound, with factors like network expansion, e-commerce platform growth, mobile payment adoption, and cloudification strategies contributing to outperformance in specific markets, from a Sri Lankan operator's aggressive tower rollout to strength in e-commerce and mobile payments among operators in Taiwan, mainland China, and Japan. Capital expenditure and growth are closely linked too, as operators allocate increased spending toward R&D and 5G infrastructure while data consumption rises, even as early 5G adopters in North Asia pull back on capital spending while others accelerate.

A dedicated growth index ranks operators using a two-factor framework based on both absolute and percentage revenue change, offering a way to compare growth performance across markets with very different population sizes and economic conditions. Some operators still face continued financial pressure, from regulatory dues weighing on one South Asian carrier to prepaid revenue softness in more mature, saturated markets.

With early 5G adopters already seeing ARPU gains, how long before that uplift becomes visible across the rest of the region's telecom operators?