Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Asia Pacific expands telephony footprint

Anuradha Shukla | March 15, 2017
Service providers expanding service portfolios to address the different requirements of vertical and horizontal customers, according to Frost & Sullivan.

Telephone call
Credit: GraphicStock

The Asia Pacific Hosted Internet Protocol Telephony (IPT) and Unified Communications and Collaboration (UCC) services market is growing at a very fast pace, according to a newly released report by Frost & Sullivan.

The region's service providers are making efforts to expand their service portfolios to address the different requirements of vertical and horizontal customers.

Frost & Sullivan has identified Australia, Japan, South Korea and New Zealand as the largest markets for hosted IPT and UCC services.

India, China, Indonesia and Vietnam report strong growth potential for IPT adoption due to the increasing influx of service providers.

"The customer demand for robust, integrated enterprise communications solutions has inspired telecoms and Internet service providers to offer a hosting or reselling model," said Digital Transformation research analyst Chong Zi Ning. "Service reliability and flexibility are the key considerations for customers to migrate to a hosted model. Enterprises with more than 200 IP phone users are prospective customers." 


Deregulating operational rights

Governments of these Asia Pacific nations are deregulating the operational rights for Voice Over IP (VoIP) and Session Initiation Protocol (SIP) trunking in order to catalyse their adoption.

This deregulation is expected to drive hosted Private Branch Exchange (PBX) adoption in the region. The report notes that foreign competitors are building partnerships with local telecom companies to penetrate and gradually expand their footprint in these markets.

Although there is immense growth potential in this region, a large installed base of legacy ICT infrastructure is restraining the swift adoption of hosted IPT and UCC services.

Customers are also discouraged by factors such as privacy concerns, the absence of well-structured legal regulations against malicious breaches, evolving directives about cloud computing, and difficulties associated with data accessibility.

"Many organisations in the Asia-Pacific region have yet to migrate to hosted telephony solutions from on-premise telephony solutions, which will be a key driver for growth in the market," added Zi Ning.  


Sign up for CIO Asia eNewsletters.