International Data Corporation (IDC) revealed the top 10 predictions that IDC believes will have the biggest impact on the telecommunications industry in Malaysia this year. Service providers are expected to redefine its strategies, transform its organizations, launch new solutions and technologies to retain its growth and stay relevant in market.
“2015 will be a critical year for telecom service providers. The telecom market is undergoing a major revolution driven by the changes of user requirements, revenue drivers and new technologies. Service providers with the right strategy will begin to see returns of their transformation investment while traditional providers will continue to struggle,” says Alfie Amir, Research Manager, Telecoms, IDC Malaysia.
The top 10 predictions are:
- Total Telecom Spending Will Experience Slower YoY Growth From 5.5% To 2.8The total spending on telecom services is expected to continue to grow but at slower rate, with only 2.8% YoY increase from RM34.3 billion in 2014 to RM35.3 billion in 2015. This is due to the slow growth in mobile services market, which accounts to 74% the total telecom revenue in 2014.
- Business Segment Will Continue To Dominate Fixed Line Market Accounting To 59% Of The Total RevenueBusiness segment has been the key driver for fixed line services. 60% of the total fixed line revenue in 2015 is expected to be from this segment. The 3rd platform adoption will drive higher requirements from enterprise users to their telecom providers, and hence creating new opportunities for telecom providers to expand their services beyond connectivity.
- Fixed Line Service Providers Will Expand Their Services To ICT Solutions And Triple The Addressable Market Fixed line providers are expected to expand their existing services to ICT solutions, addressing the changes in market requirements. This will triple their total addressable enterprise market in 2015 to around RM16.4 billion. The focus is expected to be on ICT solutions integrated with connectivity services, such as unified communications, cloud and network management services.
- Fixed Line Service Providers Will Customize Their ICT Solutions Focusing On High Potential VerticalsAs fixed line providers are expanding their products and solutions to ICT, addressing the market requirements for different vertical industries become more challenging. In 2015, fixed line providers are expected to customize their solutions based on different vertical requirements, and focus on high potential verticals such as banking and government.
- Managed Services Trend Will Begin To Rise In Telecom MarketEnterprises in Malaysia are beginning to look for more efficient delivery model for their ICT solutions, as part of their cost saving initiatives. Managed services market in Malaysia is expected to grow strongly by 9.3% to RM6.4 billion in 2015. Telecom players are expected to explore this opportunity with their large connectivity customer base.
- Mobile Voice Revenue Will Start To Decline For The First Time EverAfter a very slow growth of only 2% in 2014, mobile voice revenue is expected to finally decline for the first time ever in 2015. This is driven by over-the-top players (OTTP) and LTE adoption, as LTE provides comparable VoIP experience compared to the traditional voice service.
IDC Press Release
Shipments of smart phones and tablets buoy overall market
FRAMINGHAM, Mass., August 5, 2013 – According to the new International Data Corporation (IDC) Worldwide Black Book Query Tool, Version 2, 2013 (Doc #242462), the economic slowdown in China has driven IDC to lower its expectations for worldwide IT spending growth this year. IDC now forecasts IT spending growth of 4.6% in constant currency for 2013, down from the previous forecast of 4.9% growth and a sharp deceleration from last year’s growth of almost 6%. Despite the lower forecast, IDC expects IT spending will reach $2 trillion for the first time ever in 2013. Meanwhile, total ICT spending, including telecommunications services, will increase by 3.8% at constant currency to $3.6 trillion.
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IDC Press Release
China looks a good bet to be the engine of growth again in 2013, while U.S. will see improving PC market and more software growth
FRAMINGHAM, MA – According to the new International Data Corporation (IDC) Worldwide Black Book Query Tool just released (Document # 239304), IT spending remained broadly strong throughout a difficult end to 2012 as business confidence waned in the shadow of the “fiscal cliff’,” economic growth declined in much of Europe, and economies in Asia struggled to cope with reduced exports. In spite of these headwinds, worldwide IT spending recorded annual growth of 5.9 percent in 2012 in constant currency terms, keeping pace with the 5.8 percent growth recorded in 2011. Total IT spending on hardware, software and IT services reached $2 trillion, while ICT spending (including telecom services) increased by 4.8 percent to $3.6 trillion.
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As major economies continue to struggle and previously up and coming markets such as Brazil and China mature, IDG Connect investigates opinion on the next emerging markets. With expanded background on Indonesia, Vietnam, Myanmar and Qatar, this paper also presents local opinions from experts on the ground.
IDC predicts that emerging markets will contribute for 53% of 2012’s global ICT growth. Knowing which of these countries is next to boom is invaluable for companies looking to expand or balance lack of growth in more established environments. To test opinion, IDG Connect conducted a straw poll of 675 global IT and business professionals on which country they felt was about to boom and why. This report provides an overview of the results, highlighting the views of the voters, as well as analysing the findings and giving background on the featured countries.
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IDC Press Release
Strong performance in software, storage, enterprise network and mobile device markets offset weaker trends
FRAMINGHAM, MA – IDC announced the availability of new research, Worldwide Black Book Query Tool, Version 2, 2012 (Document # 236347), that shows Worldwide IT spending remains on course to grow 6% this year in constant currency, only slightly down on last year’s pace of 7% growth, in spite of continuing macroeconomic uncertainty. Strong performance in software, storage, enterprise network and mobile device markets has offset weaker trends in PCs, servers, peripherals and telecom provider equipment. However, the strength of the US dollar in the first half of 2012 means that IT spending in dollar terms is on course for growth of just 4% this year, a significant downturn for US-based tech vendors from the US dollar growth rate of 10.5% in 2011. Including telecom services, total ICT spending will increase by 5% this year in constant currency to $3.6 trillion (growth of 2.5% in US dollars).
For the full release click here