Altimo launches world’s first Mobile Development Index
12 Apr 2007
Altimo, a leading $20 billion international telecoms investment group headquartered in London and Moscow, publishes today its first Mobile Development Index (‘MDI’) which evaluates the investment opportunities represented by over 50 international markets, grouped in key regions.
The index was prepared by Altimo in collaboration with Professor Alexey Goriaev of the Russian School of Economics in Moscow, and Professors Chris Higson of the London Business School and Sean Holly of Cambridge University.
From this data, collected for the calendar 2002-2006 time period, Altimo has generated a composite index covering 52 markets within 11 identified regions, attributing a low value (meaning low investment return opportunity) ranging from 0.16 (Tanzania) to + 1.01 (Bangladesh).
The index highlights the following trends within the global mobile communications market:
The most lucrative and attractive emerging markets are situated in Southern and South-Eastern Asia, which will obviously continue to be the case in the short-term.
Penetration levels in Western Europe have effectively reached saturation levels, with EBITDAs declining, but there remains development upside in the US and Canada due to relatively low penetration levels.
Perhaps surprisingly, relatively modest opportunities exist in CEE due to the high penetration levels already achieved. Meanwhile, larger CIS markets (3 of the top quintile in terms of investment opportunity) remain attractive.
In terms of the MDI, Sub-Saharan Africa offers a significantly less attractive investment environment amongst emerging markets due to low per capita GDP prospects.
South Eastern and Eastern Asia offer the highest levels of investment attractiveness, and account for four of the six best markets in terms of opportunity (Bangladesh, China, India, Indonesia, and Philippines) despite generally low income and high income inequality. They are buoyed up by high projected per capita GDP growth and significant current capital expenditure.
Alexey Reznikovich, Chief Executive of Altimo, concluded:
“We will continue to build on this first initiative, which highlights the continuing investment opportunities available to Altimo and other emerging markets focused telecoms investment groups and principals. We’ve benefited already from a near doubling of our assets under management over the last 18 months to some $20 billion as a result of earlier investment decisions made by our team. We are sure there are tremendous opportunities to come, particularly in South East Asia, as this report highlights.”
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