| Request a sample from "The Infoshop", another service of Global Information.
|
SUMMARY
Wholesale Data Service Providers are on the Horns of a DilemmaThe wholesale data services market in the Asia Pacific region continues to grow despite the increasing competition in liberalized countries and the conflicting interest among participants on either to focus on providing wholesale or retail data services. Since 2002, the market has experienced slow growth although it was preceded by two golden years 2001 and 2000. This is because many new companies have entered the deregulated markets across Asia, eroding the revenue and profit margins of incumbents. Of the lot, participants that have invested heavily in submarine cable systems are the worst hit by this new wave of competition and they may never be able to pay back their huge debts. One prime reason for the enormous revenue loss of participants could be the degree of difficulty in recovering payment from resellers. These taxing developments have forced incumbents to review their current market strategies. Many of them are contemplating whether to continue providing wholesale dataservices or narrow down their product line and focus on the more profitable retail data services. Frost & Sullivan's recent research examines the Asia Pacific markets for the following domestic and international wholesale data services: public {frame relay and asynchronous transfer mode (ATM)}, private (leaded line), IP {IP transit and IP virtual private network (VPN)}, access (dial-up, ISDN, and broadband access), and others (managed services). The research provides comprehensive details about various countries in terms of revenue forecast, demand analysis, pricing, and market share helping participants to better understand the competitive landscape. IP-based Data Services to Reign SupremeThe Asian markets are currently witnessing an Internet boom with broadband replacing dial-up connections in many countries. Japan, South Korea, Hong Kong, and Taiwan are leading the bandwagon of countries that are transitioning to broadband Internet. With the proliferation of Internet access and content, usage of international bandwidth is expected to grow fast generating a huge demand for IP-based data services. Such rapid developments have changed the preference of many primary users of wholesale data services - carriers, tier two service providers, Internet service providers (ISPs), and content service providers (CSPs) to name a few - whose purchasing decision is now heavily skewed toward buying IP transit services. "The sudden spurt in IP traffic is challenging the traditional leased line business though demand for this service is still growing in Asian countries that are in the initial stages of telecommunications infrastructure development," says the analyst. "IP traffic is expected to contribute more than 37 percent of the total bandwidth consumption in Asia Pacific (both international and domestic) by 2009 and it is expected to grow even faster than the international wholesale data services sector," he adds. Business Outlook for Wholesale Data Services Still Continues to be BrightMany wholesale service providers embraced financial difficulties due to their heavy investments in building submarine cable systems. Such investments have a lock-in period of five to eight years with no returns and when market growth was not up to the expectations, these companies naturally found themselves in a financial mess. Their problems were further compounded by the excess bandwidth capacity that led to decreasing prices and shrinking revenue. However, wholesale data services market has defied all odds and continued to grow staving off multiple challenges. The market outlook is extremely positive and major regional participants are likely to gain market share in the international wholesale data sector. "In fact, some global majors that had earlier withdrawn from the market due to business uncertainties are doing a volte-face and are reentering the market," says the analyst. "No doubt that competition will be more intense in the coming days, but it will drastically reduce bandwidth prices, ultimately benefiting the end users." Frost & Sullivan Growth Partnership ServiceBased on extensive and in-depth research, real-world consulting work, and new theories tested in hundreds of companies across many industries, Frost & Sullivan has evolved its Growth Partnership Services (GPS) program that provides established and emerging firms with powerful growth visions. Moving beyond token mission statements, GPS provides an actionable vision to growth consulting partners by illustrating how key intelligence and strategic research based on defined goals can guide day-to-day behavior and overall company direction. The foundation of Frost & Sullivan's GPS includes: - Assisting companies to reach their full potential in the core business
- Providing growth strategies to help companies expand into related businesses
- Preemptively redefining the core business during market turbulence
- Applying the Frost & Sullivan framework to identify and address common mistakes resulting from misaligned corporate strategies
- Recommending growth management strategies through continuous partnership
To maximize the potential for growth within a firm's internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan's strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients' growth. Benefits of this Service- Helps participants understand the regional trends and competitive landscape of individual markets by providing comprehensive information on revenue forecast, traffic analysis, demand analysis, pricing and market share.
- Helps new entrants identify market opportunities in the Asia Pacific region besides providing assistance in formulating suitable strategies for market entry.
- Assists existing participants to understand the market trends in countries where they are present and also in those they are interested to enter.
- Provides competitive analysis helping clients to differentiate themselves and improve their profit margins.
- Offers a complete study of the wholesale services buyers helping participants to understand the market trends and make sensible long-term decisions.
Market SectorsExpert Frost & Sullivan analysts thoroughly examine the following market sectors in this research: Domestic Wholesale Data Services Market- Public - Frame Relay and Asynchronous Transfer Mode (ATM)
- Private - Leaded Line
- Internet Protocol (IP) - IP Transit and IP Virtual Private Network (IP VPN)
- Access - Dial-up, ISDN, and Broadband Access
- Others - Managed Services
International Wholesale Data Services Market- Public - Frame Relay and ATM
- Private - Leaded Line
- IP - IP Transit and IP VPN
- Others - Managed Services
TechnologiesThe following technologies are covered in this research: - Frame Relay: It is a telecommunication service designed for cost-efficient data transmission facilitating intermittent traffic between local area networks (LANs) and between end-points in a wide area network (WAN).
- Asynchronous Transfer Mode (ATM): It is a dedicated-connection switching technology that organizes digital data into 53-byte cell units and transmits them over a physical medium using digital signal technology.
- Leased Circuit (LC): It is a telephone line that has been leased for private use. In some contexts, it is called a dedicated line. A leased line is usually contrasted with a switched line or dial-up line.
- International Private Leased Circuit (IPLC)
- Internet Protocol Transit (IP Transit): It is the transmission of IP traffic across the network backbone.
- IP Virtual Private Network (IP VPN): It is simply defined as the emulation of a private WAN facility using IP facilities (including the public Internet and private IP backbone).
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY2 AUSTRALIA3 CHINA4 HONG KONG5 INDIA6 INDONESIA7 JAPAN8 MALAYSIA9 NEW ZEALAND10 PHILIPPINES11 SINGAPORE12 SOUTH KOREA13 TAIWAN14 THAILAND
|
