SINGAPORE, 6 FEBRUARY 2009 Consultancy firm IDC said that it expects the APEJ telecom services market to reach US$253 billion in 2009, representing a growth rate of 8.9 per cent.
Spending in enterprise networks is forecast to grow by nine per cent in 2009 reaching US$10.3 billion, it said. Growth will be driven by continued spending in datacenter networks and migration to an all IP platform. Carrier equipment market will grow moderately at 3.9 per cent with the total market reaching US$52.7 billion.
The long term economic prospects in the region remains very promising, as such, we do not expect carriers and enterprises to hunker down and turn off the investment switch, says Adrian Ho, research manager for IDC's Asia Pacific Managed Services and Enterprise Network Group. In such economic times, we expect carriers to continue to invest in next generation mobile and IP infrastructure and enterprises to focus on technologies that will allow them to drive IT and cost efficiency, from collaboration tools, software as a service, to data centre networking technologies.
Top 10 key predictions
IDC made the following top 10 key predictions that will shape the telecommunication industry in APEJ in 2009.
1. Rethinking operator strategies in the downturn and planning for the upswing: In a recession, IDC expects consumers to be more careful about signing up for new services and SME and large enterprises will curtail spending growth in new telecom bandwidth and networking infrastructure. In a severe recession, markets will be characterised by significant job losses and bankruptcies among SMEs and enterprises. This will result in contraction in both telecom bandwidth and networking spending with carriers delaying roll out of new emerging technologies because of delays in adoption by weary consumers.
2. Virtual collaboration rises to the occasion in 2009: Results from IDC's Unified Communications & Enterprise x.0 survey in 2008 shows that the need for collaboration is indeed the most compelling driver for adopting unified communications by enterprises in APEJ.
3. It's all about virtualisation and optimisation in the next-generation enterprise data centre: IDC believes that organisations familiar with server and storage virtualisations will start to turn to the networks for further cost savings. Network will be the next frontier in data centre virtualisation.
4. Responding to network congestion: Femtocells the saving grace for incumbent operators: For operators that have licenses to provide both fixed and mobile services, as well as the necessary capital to fund upgrades of their networks, IDC believes that Femtocells will be able to offer scalable solutions to improve network coverage.
5. The age of reconfigurable radio base stations: The advisory firm believes that implementing Software Defined Radios (SDR), a software module that provides greater flexibility and functionality as compared to their hardwired counterparts, can help operators to better manage these BTS.
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