Khmer Magazine

Revenues per user in Cambodia’s mobile phone sector will drop sharply over the next five years, according to global research and consultancy firm Frost & Sullivan. The company said the average revenue per user – ARPU, a key metric for the industry – would fall to US$3.68 in 2016 from $5.14 last year, as more and more lower-income Cambodians adopted the technology and increased competition drove down revenues. “The indication is that things will get worse,” Marc Einstein, Frost & Sullivan’s...

A YEAR ago, Allison Angkor Hotel was temporarily laying off employees between May and July, Cambodia’s slow tourist season. This year, however, the hotel on National Road 6 in Siem Reap is fully staffed due to a sharp increase in Chinese guests. “During these months, it’s kind of quiet for Western tourists. In 2009 and 2010, we had to make staff take mandatory leave. But because of Chinese tourists this year, we didn’t have to do that,” Allison’s General Manager Kousoum Kina said. With...

DESIGNATED broker Sonatra Securities inaugurated its operations yesterday ahead of the Cambodian Securities Exchange launch next week. Sonatra Securities is one of four firms licensed by the Securities and Exchange Commission of Cambodia to act as brokers, meaning it can buy and sell shares on behalf of clients for a fee. Sonatra chief executive Sorn Sokna said the launch of the firm was a reflection of the government’s efforts to launch the exchange. “I firmly believe that Cambodia’s...

THE Cambodian Securities Exchange officially launches today after years of planning and delays, though insiders said yesterday stock trading isn’t expected until the end of the year. However, government officials, investors and academics applauded the launch, saying it would advance transparency in the country and offer a new path for economic growth. The bourse was a joint venture between the Cambodian government and the Korea Exchange, which hold 55 percent and 45 percent of the CSX,...

THE Ministry of Posts and Telecommunications has ordered Thai telecom companies to halt unauthorised operations inside the Cambodian border, according to an announcement. Several unnamed Thai mobile service providers have constructed towers inside the Cambodian border without authorisation, said Ministry Secretary of State Sarak Khan. “Illegal use will impact [Cambodian] profits, if local people continue to use their service,” he said late last week. The ministry had been aware of the...

DIGITAL Star Media is in talks to acquire mobile operator Excell for an undisclosed amount, a move which is expected to bring some long-awaited consolidation to the Kingdom’s overcrowded telecommunications sector by month’s end. Digital Star, which operates under its Emaxx brand and has announced plans to operate a fourth-generation mobile service by next year, aims to acquire Excell, the smallest of Cambodia’s eight mobile operators and the only one to employ CDMA2000 technology, company...

WHILE the opening of the Cambodia Securities Exchange garnered the most attention on Monday, another project in Canadia Tower’s shadow also saw its official start: the Boeung Kak lake development. The fact the CSX launched with no companies ready to trade illustrates the problems entrenched in Cambodian business, namely the lack of transparency and accountability. Although the exchange does hold the possibility that it could eventually deliver that transparency, and boost confidence in the...

ANZ Royal Bank aims to play a larger role in handling transactions in renminibi, as China’s currency becomes increasingly prevalent, company officials said yesterday. Cambodia’s fourth largest bank made its pitch yesterday, claiming domestic businesses could cut up to 5 percent from some import costs if they pay their Chinese suppliers in renminbi. The Chinese government has introduced incentives to increase usage of the renminbi, or yuan, including tax rebates of between 15 percent and 18...

SABAY Company is set to open a cinema in Sorya Mall on August 4, aiming to become the second cinema in as many months to show licenced films in the Kingdom, Sabay Chief Commercial Officer Abhaya said yesterday. Legend cinema began showing primarily Hollywood movies in City Mall last month, but Sabay is aiming to offer patrons a more diverse range of international and independent films, he said yesterday. “We don’t want to compete with the other cinema, as the market is still very small....

THE Kingdom’s property sector is beginning to emerge from the global financial crisis, but could further improve with the implementation of anti-corruption laws and enforcement of property rights, according to industry experts. Although the sector is some ways off the pre-crisis peaks experienced in 2007, the number of transactions are on pace for a 10 percent increase this year on 2009, said Cambodian Valuers Association President Sung Bonna. “Cambodia’s real estate market remains on track...

THE Kingdom’s growing agricultural sector is leading to more loans and deposits at microfinance institutions. The small-scale lenders also credit the boost in Cambodia’s agro-industry for declining non-performing loans rates. “We see that political stability and our economy are offering a strong climate for opening businesses or enlarging the businesses, leading to more demand for loans,” said Sathapana Microfinance Chief Executive Officer Bun Mony. “We don’t have any major challenges, as...

SMART Mobile yesterday announced the official launch of its 3.75G data service, a key part of the company’s strategy to capture Cambodia’s burgeoning mobile internet market. “3.75G technology allows faster and more convenient internet surfing whether it is a mobile device or a laptop which supports 3.75G technology,” the company said in a statement. The firm estimated its 3.75G would allow for data download speeds of up to 21 megabits per second and upload speeds of up to 5.7 megabits per...

The government confirmed yesterday that its draft NGO law has been submitted to the Council of Ministers, despite concerns it would restrict Cambodian civil society. Phay Siphan, spokesman for the Council of Ministers, said yesterday that the law had been submitted last week. Nouth Sa An, secretary of state at the Ministry of Interior, indicated yesterday that the time had passed for NGOs to submit recommendations. When asked whether he would accept further input from civil society, Nouth...

Chevron Overseas Petroleum (Cambodia) has been actively exploring Cambodia’s offshore Block A, and applied for a permit to begin extraction from government authorities. Yesterday, The Post caught up with its President Steve Glick, who has been in his present role in Phnom Penh for about three months, to discuss the company’s operations in the Kingdom, as well as the issues affecting the domestic oil and gas industry. Edited for length by Tom Brennan. You’ve described the oil in offshore Block...