More opportunities for APEJ telcos in 2012


5 Aug 2011
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Year 2012 will offer numerous opportunities for Asia Pacific (excluding Japan) telcos, according to the report "IDC Asia/Pacific (excluding Japan) Telecommunications 2012 Top 10 Predictions."

Big data is already becoming popular all across the world and this has increased the need for "big pipes" or ultra-fast connectivity. IDC sees large incremental potential network opportunities for telcos especially in low latency networks, and network and bandwidth optimisation.

The report forecasts a need for security and compliance for executive smart devices to address the needs of the new mobile enterprise and by 2015, 20 percent of enterprise application spending is set to be cloud-sourced.

The shipment of smartphones is expected to exceed the shipment of PCs in the region in 2012 and next year, the APEJ market will see the introduction of sub-US$100 smartphones.

Unlimited data plans will start being phased out wherever possible and replaced with tiered plans, especially for 4G LTE services, according to this report.

"The convergence of IT and networks has created an enormous amount of new opportunities for telcos in the region, far outstripping the possibilities that were imagined only years ago," said Adrian Dominic Ho, principal, Telecom and Managed Services, Networking Research at IDC Asia/Pacific. "Moreover, the massive delivery of content and endless addiction of consumers to their smartphones have reinvigorated growth in broadband and consumer mobility. This insatiable demand of the Asian consumer will also help define the decade for many telcos, especially in uncertain economic times."

Manifesto for success

Licensing models would have to be modified in 2012 as the current ones are too prohibitive for many organisations. The telcos will also see the explosion of digital content and applications delivered on multiple devices over both fixed and mobile networks.

IDC notes that next year, telcos should form dedicated innovation scout teams to find and deliver appropriate applications and content to connected homes, businesses or hotspots.

Telcos should also consider wholesaling their spare capacity to existing hosters, IT vendors and even other telcos which do not have the deep pockets required to build up data centres.

IDC adds that in 2012, telcos would also increasingly look to cloud automation and standardisation of many processes to drive further efficiencies.

"The telcos' manifesto for success in 2012 is one really of common sense stemming from the need to focus on the three core factors driving ICT spending," said Ho. "Internally, telcos should also focus on operational efficiency, business transformation and their customer as shrinking margins and increased competition will make internal transformation more critical than ever before."
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