Fast growth fuels Asian telecom demand

Rapid economic growth across Asia is fueling demand for telecommunications services, particularly mobile technologies and IP-based services.

These technologies will be highlighted at the annual CommunicAsia exhibition, set to open its doors next week in Singapore.

Asian economies are on a roll, with India, China and Singapore reporting GDP (gross domestic product) growth above 9 percent during the first quarter. Other Asian economies are not far behind. Thailand, South Korea, Taiwan, Malaysia, and the Philippines all posted growth of 5 percent or more during the same period.

“This development is helping to increase demand for communications, both in the consumer and business segments,” wrote Tim Crowley, IDC’s research manager for IP (Internet Protocol) services, in a recent report.

Demand for telecommunication services in Asia, excluding Japan, was worth $65.4 billion during 2005, IDC said. The market will continue growing at a modest clip over the next few years, reaching $70.6 billion by 2010. But that slow overall growth belies a dramatic shift now underway in the Asian telecommunications market.

Demand for mobile and IP-based services, such as VOIP (voice over IP), is growing quickly in Asia, as demand for traditional fixed-line telephony declines. “In 2005, IP-based data services accounted for 19 percent of all data revenue, and after strong growth throughout the forecast by 2010, this will rise to 69 percent,” Crowley wrote.

These trends will be reflected at CommunicAsia. Samsung Electronics is expected to demonstrate new mobile technologies and show off new mobile handsets. One of the technologies expected to be on display is WiMax, a technology that allows operators to offer wireless Internet access over very large areas.

Other vendors, such as Motorola and Lucent Technologies, also plan to showcase their latest products at the exhibition.

More than 60,000 visitors and 2,300 exhibitors expected are expected to attend CommunicAsia, according to show organizers. The exhibition runs from June 20 to June 23.