Broadband, 3G - Gateway For Nex-Gen Technologies

by CXOtoday Staff    Jun 02, 2006

Telecom service providers in the Asia Pacific region are looking to broadband and mobile segments to enhance diminishing revenues from the fixed voice segment.

Countries like India and Indonesia are experiencing an increased adoption of 3G services and broadband, while their flourishing cellular markets ensure continuing competitiveness.

A Frost & Sullivan’s analysis, which covers 13 major Asia Pacific economies - Asia Pacific Telecom Services Review and Forecast Databank, revealed that revenues in this market in 2004 totaled $246.20 billion and is expected to touch $320.80 billion by the end of 2008.

“Although service providers are providing faster network speed, the pressure to bring down prices persists. In time, service providers are likely to migrate to flat-rate or capped plans, as the cellular market matures and the rate of broadband adoption improves,” said Janice Chong, Program Leader, Frost & Sullivan.

3G service providers offering transparent and bundled packages that comprise voice and data services are now offering flat-rate schemes, and unlimited data download packages offered by broadband service providers are becoming increasingly popular.

Operators however must first address increasing threat of mobile technologies, pricing concerns and competition from alternative voice services in order to exploit these developments.

“While the growth of broadband solutions aids in stabilizing the decline in fixed-line sales, it also drives VoIP services. This would lead to a greater number of fixed-line connections, but a slump in the revenue of traditional fixed voice revenue,” points out Chong.

Rising end-user migration towards broadband services and the enormous growth opportunities in new markets such as India, Indonesia and the Philippines is set to boost revenues of Internet-based services.

Countries like South Korea are promoting rapid deployment of broadband infrastructure through affordable fees and progress to next-generation technologies such as WiBro (wireless broadband).