2008 Telecoms, Mobile and Broadband in Asia

While experiencing the occasional setback, the telecommunications sector in Asia manages to move on in a relentless fashion. On one hand, the developed economies of the region are aggressively moving into more advanced networks and value added services, leading the world in many respects. On the other hand, the developing markets are busy building infrastructure, reforming their marketplaces and, most significantly, experiencing strong subscriber growth. Not surprisingly, strong growth in mobile services across Asia continues, while in the broadband Internet sector Asia is a global leader.

And of course, there is China. The importance of China's economic progress and wellbeing to its Asian neighbours - and particularly the developing ones - cannot be overstated. The Chinese telecommunications market is the largest in the world. With the mobile sector still expanding at over 18% annually going into 2008, the long-awaited licensing of 3G services has arrived. In February 2008, it was announced that China's government, carriers and vendors are set to spend more than 70 billion Yuan on developing new wireless technology over the next 12 years. This follows a decision by State Council in December 2007 giving the go-ahead for a "next-generation broadband wireless mobile communications network" project. The project will cover all kinds of wireless development over the next 12 to 15 years, including 3G, 3.5G and 4G.

Most significantly, operators throughout Asia have generally been reporting healthy performances overall, as the impact of revised business plans and strategies started taking effect.

Asia continues to embrace the Internet, with an increasing number of people going online and, at the same time, there is greater recognition of the value of the Internet in commercial activities. Broadband Internet access in its various forms is having a huge impact, even making its presence felt in developing markets.

Regulatory reform has continued in a somewhat fragmented fashion across the region. The push for various multi-lateral trade agreements has ensured that pressure is maintained to achieve the regulatory reform programs in the developing telecoms markets. At the same time, programs for the privatisation of government-owned operators were continuing, albeit more slowly in some markets than in others.

A number of the more highly developed economies in Asia have been moving into the area of convergent and triple-play networks. Governments and operators have been facing the challenge of upgrading infrastructure and architecture. Not surprisingly, Japan and South Korea have again been the early adopters in this territory and have made significant progress, this having spilled over into Hong Kong, Taiwan and other Asian markets. And, not unexpectedly, China has been making a strong showing in its embracing of converging technologies.

It is estimated that Asia still needs to invest at least US$1 trillion in new infrastructure over the next ten years to meet projected demand. With Asia's developed markets starting to build Next Generation Networks (NGNs), Internet Protocol (IP) is shaping as the premier delivery system for telecom services.