For the last decade, investment strategies adopted by telcos in Asia have remained relatively cautious. While obviously still keen to find new markets, operators, often with the support of equipment suppliers, have been building fresh business plans to suit the changing market. The Asian Economic Crisis of the late 1990s followed by the dotcom crash had taught operators some powerful lessons on investment in the telecom sector. A case in point was the oversupply of submarine cable capacity that became apparent four or five years ago.

This had a particularly severe impact on investment plans – and on the financial viability – of companies. As the submarine cable market started to rebound in 2007, it once again needed an injection of capital. With the availability of credit being much tighter, the players involved are expected to adopt a much more circumspect approach to funding these projects. At the same time, after a period of sluggish growth, the satellite segment has also seen a series of new launches and there are signs that this will continue, at least at a modest pace.

The region has a wide spectrum of telecommunications and IT development. Countries can be found at both ends of this development spectrum. Some of the world’s leading developers and implementers of technology are to be found in Asia, but many countries in the region remain in the early stages of their IT and telecommunications adoption. There is, nevertheless, a consistently strong awareness of the importance of telecommunications and information being demonstrated right across the region.

The commercial significance of telecommunications is well recognised and, at the same time, the potential contribution to the social and cultural wellbeing of nations is also well appreciated. As a consequence, growth potential in the Asian market remains extremely high; the big new drivers are broadband and IP services, as well as ongoing growth in the mobile sector, particularly as more and more VAS come into play. NGNs are also being rolled out by the regional heavyweights, the report added.

Source: Business Wire