Many have already started. The Philippines, Hong Kong and Malaysia each have six cellular operators. Competition is also fierce in long-distance and data transmission. Kiss your modem goodbye. The question now is whether the telcos can make a rapid transition from well-fed favored sons to nimble, hungry competitors.
Investors seem to think so.
They have bid up many of the region's large telephone companies this year. The surges have partly come on the back of overall Asian stock rallies, but they've also happened because investors see these companies as legitimate Asian Internet plays. Before Asia's economic Crisis in 1997, telecommunications was among the hottest industries in Asia. The Crisis slowed the momentum, but now companies are regrouping. One of the first big moves many of them have taken is partnering with foreign companies.