BT, Orange, AT&T and Singtel Lead the Way for Next-Generation Telecom Services in Asia/Pacific, IDC reports
27 Jan 2016
Singapore, 28 Jan, 2016 - According to the IDC Telecom MarketScape for Next-Generation Service Providers 2016, BT, Orange, Singtel and AT&T are the 'Leaders' of the next-generation telecom service providers in Asia/Pacific, but notes there are plenty of challengers in the market.
Published in IDC’s sixth edition of its annual assessment of next -generation telecom operators in Asia/Pacific, these service providers demonstrated a strong regional network presence, diverse portfolio of public, private, and hybrid cloud services, comprehensive suite of managed services offerings in the region, as well as a large base of mid and large-sized enterprises, multinational corporations (MNCs), and government clients across Asia Pacific.
This pack of 'Leaders' is closely followed by "Major Players" in the market which includes regional service providers, such as Telstra and NTT Comms, along with global service providers including Vodafone and Verizon, as depicted in Figure 1.
Figure 1: IDC MarketScape A/P Next Generation Telcos: Telecom Services Market
"Most of the service providers today have responded well to address enterprise requirements for consistency, cost-effectiveness, and expansive coverage. Regionally and globally, service providers have blanketed key markets and hubs with managed VPN and Ethernet access coverage. However, they differentiate themselves based on their focus and key strategic capabilities”, said Nikhil Batra, Research Manager for IDC's Asia/Pacific Telecom team.
"The service providers are rising to the challenge of meeting these complex enterprise demands, for secure networking, cloud, collaboration, and M2M/IoT solutions. More importantly, service providers in the region have realized their role in driving 3rd Platform technologies (cloud, social, mobile and big data) in emerging markets and are helping enterprises in their transformation journey by acting as trusted advisors who understand their business", added Mr. Batra.
Amongst all the telcos assessed, Australia-based Telstra was the best performer over the last year in terms of year-on-year movement, largely due to its Pacnet acquisition, which gives it additional SDN/NFV and Data Center capabilities, undersea cable network and a significant footprint in China market. Other than Pacnet, it is Telstra’s industry specific solutions and cloud services (mainly in Australia) and Indonesia joint venture with Telkom Indonesia that helps in this upward push.
Key Success Differentiators for Service Providers
In order to address today's dynamic enterprise demands, telcos are looking beyond just selling 'dumb pipes' to enterprises. Network services are becoming more 'intelligent' as service providers continue to invest in technologies within their network core to deliver more efficient, scalable, and 'smarter' networks to enterprises. Beyond the network layer, telcos are also expanding their managed services portfolio to grow revenue. The more advanced telcos are also moving deeper into the ICT stack, providing professional and consultancy services, enterprise mobility, Big Data, M2M, and IoT services and solutions.
IDC highlights the following as key differentiators for success in this market:
• Capability to offer a diverse portfolio of hybrid, public, and private cloud services as well as orchestration capabilities.
• A well-rounded portfolio of managed ICT and cloud-based services including 3rd platform technology solutions, UC&C, Managed Security and Professional services.
• SDN/NFV implementation for enhanced customer experience and operational efficiency.
• Wide range of enterprise mobility, M2M, Big Data, and Analytics solutions.
IDC MarketScape: Asia/Pacific Next-Generation Telcos: 2015–16 Vendor Assessment leverages IDC's MarketScape framework to evaluate 11 leading regional and global telecommunications service providers in Asia/Pacific. The evaluation framework consists of a large variety of parameters such as comprehensiveness of service offerings, datacenter and cloud capabilities, go-to-market strategy, growth strategy, partner ecosystem, and innovation strategy. Service providers are evaluated based on their current capabilities and their strategies for the next 3–5 years that they have set for the enterprise segment in the Asia/Pacific region.
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About IDC MarketScape
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.
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Orange S.A., Verizon Communications, Inc., Tata Group, Vodafone Group Plc, Nippon Telegraph and Telephone Corporation, Singapore Telecommunications Limited, AT&T Inc., BT Group plc, Deutsche Telekom AG, Telstra Corporation Limited, GCX LIMITED
Big Data analytics and discovery, Customer relationship management applications, Enterprise mobility, Hybrid clouds, Infrastructure and platform clouds, Internet of things, Unified communications and collaboration, Wireless and mobile infrastructure
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