The telecom market in Asia Pacific is witnessing unprecedented growth, driven by increasing demand for data and internet services, advancements in digital technologies and rising disposable incomes. As a result, telecom companies are facing intense competition and are constantly seeking innovative strategies to expand their market share.
Embracing Digital Transformation
In past years, the United States has been the global leader in the telecommunications sector, with AT&T and Verizon dominating the market in terms of revenue. However, Asian businesses have also recently become significant players in the sector. The Asia-Pacific nations have been firmly established on the globe because of the examples set by China and Japan. Major telecom providers are present in Australia, South Korea, Taiwan, India and Vietnam, enhancing the prominence of the Asia Pacific in the telecommunications industry.
While data services for both mobile and fixed-line were anticipated to continue growing, the income of voice services in Asia has been dropping recently, notably mobile voice. The adoption of 5G, which was expected to account for more than half of mobile connections in developed Asia-Pacific nations by 2025, is beginning to increase among telecom operators.
According to the report, the region has over 2.8 billion mobile subscribers, accounting for more than half of the global mobile subscriber base. The telecom industry in Asia Pacific is highly competitive and is characterized by a large number of players, both local and global. The industry is governed by stringent regulations, and companies have to comply with complex regulatory frameworks in each country.
Innovative Strategies to Expand Market Share
Diversification of products and services is essential for telecom companies to maintain a competitive edge. Companies can offer a range of services, including mobile, fixed-line, broadband internet and enterprise solutions. An example is Singtel, which has diversified its offerings by providing a range of services, including digital advertising, data analytics and cybersecurity.
Another example is the partnership between Singtel and Netflix in Singapore. Singtel offers exclusive Netflix packages to its subscribers, providing them with seamless access to popular streaming content. This collaboration has helped Singtel differentiate itself in the market and increase its customer base.
CEO of Consumer Singapore, Singtel, Mr. Yuen Kuan Moon, said in a statement, “Our focus is to deliver quality content that our customers can access on any connected device at any time using our high-speed fixed and mobile networks. This OTT partnership with Netflix is the first of more to come, and Singtel customers can expect even more interesting content in the months ahead.”
Telecom companies can also invest in emerging technologies to expand their market share. Emerging technologies such as 5G, IoT and cloud computing offer significant growth opportunities for telecoms. For example, in the first half of 2022, China Mobile made a total investment of CNY58.7 billion (US$8.7 billion) in the 5G market.
To elaborate, China Mobile has announced that they have utilized one million 5G base stations, with 300,000 of them being 700 MHz 5G base stations. These stations have served over 263 million 5G network customers and more than 4,400 5G-dedicated network projects. As they continue to expand their 5G coverage, they have adopted a scientific approach to coordinate their 700 MHz, 2.6 GHz, and 4.9 GHz frequency resources to maximize the benefits of each frequency.
Furthermore, China Mobile has been working on developing future 6G technologies and has made progress in this area. They have completed the verification of R16 technology and have played a significant role in the freezing of the R17 standards by leading 50 R17-related projects. They are also leading 24 projects related to 5G-Advanced R18 standards, with a focus on AI-based wireless network architecture, multimedia enhancement and other technologies.
China Mobile has also made advancements in network products, including their proprietary 5G small cells. Regarding 6G, China Mobile has been leading the way in envisioning the demand for this technology and has made breakthroughs in over 10 key technologies. They have also established a 6G collaborative innovation base to drive domestic industrial research.
Adapting to Changing Market Conditions
To succeed, telecom companies must be able to quickly adapt to changing market conditions. This will allow them to position themselves for long-term success in a constantly evolving market. The telecom market in Asia Pacific offers great growth opportunities for companies that can navigate the competitive landscape and innovate their strategies.
Telecom companies can improve their infrastructure and provide faster, more reliable services by embracing digital transformation and utilizing advanced technologies. This can lead to increased customer satisfaction and opportunities in emerging markets like smart cities and IoT.
It is important for telecom companies to tailor their solutions to meet the unique needs of different markets. By conducting thorough market research and customer segmentation, they can create customized products and services that appeal to consumers.