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Introduction of 5G-Enabled Value Added Services to Boost APAC Telecom Sector Revenues
January 2, 2020 News


Operators have been looking for additional revenue streams to boost their bottom line, with the strong competition destroying margins in the telecommunications space. The deployment of 5G allows operators to provide new services to both enterprises and consumers. Frost & Sullivan made a prediction that the new value-added services could potentially become a bigger contributor to sector revenues than basic connectivity services, driving the 5G market in the Asia-Pacific region to reach US$124.8 billion by 2025.

Sofea Zukarnain, Research Associate, Information and Communications Technology at Frost & Sullivan said “Mobile operators are aggressively entering the 5G space to grasp opportunities presented by expanding their portfolio, in order to increase revenues and improve customer experience.”

“To enjoy the full potential of 5G, mobile operators ought to focus on industry partnerships and collaborations, which will reduce overall costs and hasten the deployment of the new use-cases enabled by the introduction of 5G,” she added.

According to Frost & Sullivan’s latest research, 5G in Asia-Pacific, Forecast to 2025, which go in detail the progress of implementing 5G in the APAC region, and delivers an in-depth country-wise analysis of the market, together with comparisons against global benchmarks. The research also showcased different use-case scenarios for 5G, identifies the upcoming increase opportunities in this space, and gives strategic recommendations and forecasts for the sector through to the year 2025.

The 5G market in the APAC region is prepared to start growing from H2 of 2019, following commercial deployment in South Korea, and the soft launch of Fixed Wireless (FWA) in the Philippines. A majority of developed country in the region are expected to deploy 5G commercially in 2020, whereas developing countries are expected to launch 5G after 2020, with the lack of available spectrum. The local governments of the Philippines and Thailand made an effort to advance the process of spectrum allocation to quickly adopt 5G.

“Local government support will be critical for the success of 5G. Regulations need to cover new 5G use cases and should also be flexible enough to help drive the local economy in line with their respective digital nation initiatives,” noted Zukarnain.

Telecom operators and other 5G market participants should explore the opportunities in:

  • Developing 5G infrastructure to deliver AI services.
  • Establishing partnerships with mobile edge computing providers to support the deployment of latency-sensitive applications enabled by 5G.
  • Offering scalable identity management, network slice security, and distributed authentication services to ensure a secure 5G network for customers.
  • Collaborating with industries such as automotive, healthcare, and utilities to provide cross-industry connectivity.

5G in Asia-Pacific, Forecast to 2025, is part of Frost & Sullivan’s Information and Communication Technology Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.