TelcoNews Asia logo
Telecommunications technology news for Asia's largest enterprises
Story image

APAC spending on telecom services grew by $11 billion - IDC

By Jessie Chiang
Mon 9 May 2022

The International Data Corporation (IDC) says spending on telecommunications services and pay-TV services in APAC jumped from $494 billion in 2020 to $505 billion last year.

There was also an increase in global spending, reaching $1,566 billion in 2021, increasing 1.6% year over year.

The IDC says 2021 was characterised by the quick recovery of the global economy from the slump caused by COVID-19.

As a result, the IDC says there was additional spending growth on telecommunications services, increasing the total value of the worldwide market slightly faster than initially forecast. 

This trend was common for all global regions:

  • The Europe, Middle East, and Africa (EMEA) market grew 0.2 percentage points faster than forecast in October 2021.
  • Asia/Pacific grew 0.5 percentage points faster.
  • The Americas grew 1.0 percentage points faster. 

The IDC also recorded the higher-than-expected growth in all technology segments except for pay-TV. The organisation puts that down to the fact that people could spend more time outside of their homes, and therefore, some decided to cancel subscriptions to TV packages acquired during the lockdowns.

While the IDC forecasts that 2022 and 2023 will continue to see growth in spending, it expects the rates in its first half will be lower than what was recorded last year.

It says accelerated inflation and the raising of benchmark interest rates by the central banks will consequently lead to slower economic growth in the years to come.

IDC worldwide telecom services research director Kresimir Alic says the economic recovery in 2021 resulted in higher-than-expected growth rates, but the same forces that pulled the market up can also push it down.

"Much like other markets, this market is not immune to changes in economic trends and forces such as inflation and recession might quickly change the shape of the curve," he says.

"Inflation is already happening, and economies have started to slow down – for that reason our view of the market remains cautiously optimistic."

The IDC says inflation should nominally have a positive impact on this market. For example, operators increase their tariffs, clients pay more, and the market's total value grows faster than previously expected. 

However, inflation also generates a deterioration of consumers' and businesses' purchasing power, thus causing a decrease in demand. The IDC says the impact of inflation in the telco services market will be stretched over the next several years. 

This is because a high proportion of users have two-year contracts with operators that guarantee stable fees until their contracts expire. That also means that the effects of inflation will initially be higher in the markets with a higher proportion of prepaid customers.

The IDC says the war in Ukraine will have a negative effect on the market for communications services in EMEA. It will primarily hit the Ukrainian market, which will see a considerable decline due to destroyed network infrastructure and a huge number of people leaving the country.

It says the Russian market will also decline as local demand will be under pressure due to the recession caused by international sanctions. On the other hand, the war will positively impact the markets of neighbouring countries (Poland, Slovakia, and Romania) that are hosting large numbers of Ukrainian refugees.

In addition, the IDC says the COVID-19 saga has not ended yet. The current lockdowns in China and possible emergence of new variants of the virus in the rest of the world might bring additional impacts to the market, primarily in the business fixed data services section. 

It says previous waves of COVID-19 did not drastically affect the global market for telecom services, but the related global supply-chain disruptions are already causing shortages of end-user and network equipment and thus creating new concerns for supply-side participants. 

The IDC expects worldwide spending on telecom and pay TV services to increase by 1.4% in 2022 and reach a total of $1,588 billion. 

Related stories
Top stories
Story image
Employment
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
DDoS
NT selects Radware to improve telecom cyber defenses
National Telecom Public Company (NT) has chosen Radware to strengthen the cyber defences of its international telecommunications infrastructure.
Story image
Wireless
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Customer experience
Research unveils precarious customer loyalty for retailers
New research has found customers are reassessing established brand loyalties as their priorities and behaviours shift.
Story image
Zayo
Zayo makes waves with world's longest 800G optical wave
Zayo Group has made history with the world's longest 800G optical wave, beating the former world record by 74.5km.
Story image
Kacific
Kacific launches service to combat enterprise power outages
Kacific Broadband Satellites Group has launched Enterprise Backup, a new service intended to protect organisations against frequent power outages.
Story image
Cable
New high-performance cable in the works for Asia
A new high-performance submarine cable is being built to enhance connectivity between Hong Kong, China and Southeast Asia.
Story image
Kacific
Kacific recognised at Asian Telecommunications Awards 2022
Kacific has received two significant awards at the Asian Telecommunications Awards 2022 for its commitment to underserved communities.
Story image
Voyager
Voyager begins countrywide 100 gigabit network upgrade
Voyager Internet says with recent fibre speed upgrades and ever-increasing data usage the 100G upgrade is needed to provide fast, reliable broadband.
Story image
Telstra
Telstra expands business offerings in the Philippines
The expansion aims to offer more choice for customers and enhance connectivity into the Philippines, and within the country.
Story image
NeoPhonics
NeoPhotonics tech demonstration proves enhanced data center capabilities
NeoPhotonics has announced new technology components set to enhance data center and telecom networks by providing better operational support.
Story image
Microsoft
Avaya expands Microsoft partnership to deliver OneCloud on Azure
The joint technology and go to market agreement will help customers accelerate their digital transformation initiatives in the cloud.
Story image
Manufacturing
Internet of Things helps NZ glass manufacturer disrupt the industry
The Internet of Things is helping New Zealand glass manufacturer AGP disrupt the industry with four-day supply delivery.
Story image
Techday
Techday launches TelcoNews sites to meet growing demand
Techday has launched three new TelcoNews sites to cater to our enterprise telecommunication technology audiences across Asia, Australia, and New Zealand.
Story image
CRM
Zendesk announces new conversational CRM solutions
“The last few years have made it obvious that digital is the front door, convenience is paramount and relationships are anchored in conversations."
Story image
Artificial Intelligence
Juniper Networks named Leader in 2022 Gartner Magic Quadrant
Gartner has named AI-driven networks vendor Juniper as a Leader in the Magic Quadrant, giving it the highest score for Completeness of Vision.
Story image
Amazon Web Services / AWS
Databricks strengthens AWS partnership with new Lakehouse offering
Customers will experience faster onboarding and unified account administration to make building a Databricks Lakehouse on AWS easier.
Story image
Manufacturing
Major growth for IoT manufacturing market by 2026 - report
A new report by Future Market Insights on the Internet of Things manufacturing market says the market share is likely to reach approx. US$399 billion by 2026.
Story image
MATRIXX
MATRIXX and CompaxDigital partner to drive 5G innovation
MATRIXX Software has entered into a partnership with CompaxDigital, a provider of cloud-native business support solutions.
Story image
Trends
Foldable screens and wireless headsets among the top predicted consumer trends
New research has revealed that devices with foldable screens will reach nearly 10% of all smartphone sales by 2030.
Story image
Data Center
Digital Edge to build South Korea's largest commercial data center
The project will be the largest commercial data center project in South Korea with total IT power of 120MW and a capital investment of more than KWR$1 trillion.
Story image
Telecommunications
APAC spending on telecom services grew by $11 billion - IDC
The IDC says spending on telecommunications and pay-TV services in APAC jumped from $494 billion to $505 billion last year, following global trends.
Story image
Cybersecurity
HackerOne launches Attack Resistance Management solution
HackerOne has launched Attack Resistance Management - a new category of security solution that targets the root causes of the attack resistance gap. 
Story image
Cloud
India’s largest IX operator surpasses 500 connected networks
India's largest carrier and data centre neutral Internet Exchange (IX) operator has exceeded 500 connected networks across the country, making it the fastest-growing interconnection platform.
Story image
Internet of Things
Spark takes major shareholding in Adroit to enhance IoT
Spark has announced that it will take a significant shareholding in IoT company Adroit, which will enhance IoT solutions for potential customers of both organisations.
Story image
ABI Research
70% better 5G power consumption with hardware optimisation
ABI Research has found that hardware optimisation promises up to 70% improvement in 5G power consumption as networks reach scale in many developed nations.
Story image
Telstra
Telstra’s new subsea cable to connect APAC and the US
Telstra says the first direct subsea cable to connect Australia with the US will offer low latency and a massive 72Tbps of capacity.
Story image
Silver Peak
The path to an adaptive, modern network
Managing and securing the network looks different than it did just two years ago—especially given that most of these networks are made up of multi-generations of infrastructure stitched together over time.
Story image
Internet of Things
M2Cloud and Thales develop IoT-based LTE monitoring system
M2Cloud has announced it has developed an Internet of Things (IoT)-based LTE monitoring system with Thales, optimised for biopharmaceutical monitoring.
Story image
Infrastructure
MATRIXX expands StarHub partnership with CCS offering
MATRIXX Software has deepened its partnership with StarHub, enabling the company to provide its cloud-native, converged charging system (CCS) as part of StarHub’s IT infrastructure.
Story image
Artificial Intelligence
Market intelligence study for the AI in IoT market
Machine learning and deep learning technology are set to flourish at a 5.7% CAGR in the global AI in IoT market.
Story image
Red Hat
Red Hat expands capabilities to provide streamlined application development in cloud
"Application development is undergoing significant change and developers need tools to support this transformation."
Story image
Storage
Energy storage demand momentum continues, says BYD
BYD has announced an expansion of its production capacities and will deliver 250,000 units of its energy storage system, BYD Battery-Box Premium.
Story image
Tech job moves
Tech job moves - Cisco, Hitachi Vantara, Tricentis & Zscaler
We round up all job appointments from April 28 - May 5, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Apple
LYK Mobile becomes authorised Apple Repair Program partner
LYK Mobile has announced a strategic partnership with Apple, making it one of Singapore's authorised partners for the Apple Independent Repair Program.
Story image
Wireless
SmartCIC, BICS partner to expand wireless service options
SmarCIC has partnered with BICS to increase choice for organisations using fixed wireless services, expanding existing carrier relationships for its CELLSMART division.
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
Internet of Things
Paessler announces Top Partner Excellence Awards 2021
Paessler has announced the recipients of its Top Partner Excellence Awards 2021, recognising the contributions of VAR in the Asia Pacific region.
Story image
Unified Communications
Konftel secures climate-neutral certification for third year
Konftel has strengthened its climate-neutral ethos after securing official certification for the third year in a row.
Story image
Power / Energy
SmartCIC report reveals top five 5G carriers in the world
The Global Cellular Performance Survey also found that 5G networks are delivering high download speeds but lagging in upload speeds.
Story image
Amazon Web Services / AWS
MongoDB announces significant expansion of AWS partnership
MongoDB has revealed a major expansion of a multi-year strategic collaboration agreement with Amazon Web Services (AWS) to simplify cloud adoption for customers.
Story image
Apple
Apple announces newest iPhone SE
Apple has today announced the newest iPhone SE in its arsenal, mixing some of the best new iPhone technology with an iconic design.
Story image
Kacific
Kacific’s Christian Patouraux named CEO of the Year
Telecom Review has named Kacific’s Christian Patouraux as CEO of the Year for Wholesale & Capacity, also acknowledging the company’s overall achievements.
Story image
Nokia
Nokia and Optus reaches new 5G levels using Samsung
Nokia and Optus have achieved the world’s first 3CC Carrier Aggregation 5G SA data call using a commercial Samsung headset in Australia.