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Benchmarking of Service Providers of Asia Pacific
Frost & Sullivan, Dec 2006
This Frost & Sullivan research service titled Benchmarking of Service Providers in Asia Pacific provides an analysis on the competitive structure, key market trends, market shares, revenues, and technology trends impacting service providers. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following applications: fixed, mobile, Internet and data communications services.
Fixed Telephony Service Market Faces Threat from Internet Protocol Telephony
Internet protocol (IP) telephony is rapidly gaining popularity, and is set to overtake fixed telephony service. Once its quality and interconnection issues are resolved, more people are expected to migrate to IP telephony. Therefore, fixed service providers are venturing into IP telephony services by offering them as part of their broadband access bundles rather than as stand-alone services. 'IP telephony has a much larger impact in markets such as Hong Kong and South Korea- which have high broadband penetration- since high bandwidth and low cost broadband access ensure quality of service,' opines the analyst of this research service. Even in markets with low broadband penetration, there is increasing surrender of fixed lines with users preferring mobile communication services.
While cellular markets around the world are fast approaching saturation, Asia Pacific, uniquely, continues to exhibit high growth. Subscriber growth here is mainly fuelled by pre-paid services. The availability of easily affordable handsets is also encouraging penetration. Technologies such as third generation (3G) and worldwide interoperability for microwave access (WiMax) are helping providers garner more market shares as they accelerate the shift from fixed to mobile.
Internet Services and Data Communications Services Markets Poised for Significant Growth
With major expansion of broadband access subscriber base and the increasing competition among Internet service providers, the Internet services market in Asia Pacific is poised for significant growth. China leads the pack, followed by South Korea and India. This development is due to considerable price reduction for entry-level plans and by provision of faster services such as asymmetric digital subscriber line 2+ (ADSL2+). Mounting interest in broadband facilities including voice over IP, video conferencing, entertainment, and gaming also drives demand for broadband.
Meanwhile, the region’s strong and booming economy, business connectivity needs, and stable political scenario drive the market for data communication services. The launch of regional bases of multinational companies (MNC) in China, India, and Malaysia and the popularity of these countries as business process outsourcing (BPO) centers has also fuelled market growth. Sliding prices due to intense competition among bandwidth providers are making higher bandwidth capacity more affordable. 'With the global shift toward fully IP-based network and services, providers are expected to strategize on different service offerings to optimize market position,' notes the analyst. 'They are also likely to benefit by selling value-added services in the future.'
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