Connectivity in the digital age
The proliferation of communications devices and "always-on" smart phone applications in today's increasingly connected world are driving the need for advanced telecom infrastructures to host and transmit data. To meet this demand, telecom companies must evolve their networks and service offerings.
Overview
In today's increasingly connected world, there is a growing demand for access to information and services anywhere, anytime. From banking transactions and shopping to watching TV shows and playing video games, people expect to be able to do what they want, when they want through their mobile devices.
The telecom industry has played a key role in fuelling this digital transformation of society by making mobile communications and broadband access nearly ubiquitous. Building on the back of this accessibility, a number of other factors have also contributed to this phenomenon, including richer content, increased penetration and growing demand from as yet untapped developing markets.
This unrelenting demand for greater connectivity is unlikely to diminish in the coming years, with the spread of mobile communications continuing to feed the hunger for data. The real story, however, is about more than just the sheer numbers of devices in the market. It is the spread of the smart phone that has brought demands on telecom infrastructure to a whole new level. A recent study by Signals Research Group shows that some of the more popular smart phone applications are also the greatest generators of signalling traffic, as they constantly need to ping the network to get updates, greatly increasing signalling traffic and network strain.
The proliferation of these "always-on" applications is expected to continue, and will place growing demands on network infrastructure and capacity. Geo-location applications, which need to constantly monitor where a user's phone is, are set to be a major contributor in this respect as services such as Facebook, Twitter and Foursquare ramp up their offerings.
Rich media applications are also having a major impact on network demand, with videocalling, online gaming and interactive apps growing at the expense of simple voice calls and static websites. This is driving data traffic volumes to new heights, and there is no end in sight as developers are putting out new apps at a torrid pace. Apple's popular App Store, for example, sees an average of over 600 new apps submitted every day.
Regardless of where the demand comes from, or what drives its growth going forward, one thing is clear: telecom companies are under significant pressure to boost their network speeds and network capacity in order to handle the increased traffic of the Digital Age. To deal with these increased demands, telecom companies must continue to develop their networks and storage capabilities, as well as introduce innovative new services.
Facts on the ground
According to a May 2010 report from IDC, the amount of digital information in the world will grow to 35 trillion gigabytes in 2020. While a large share of this data will be stored in digital archives and other relatively static storage media, an increasingly significant proportion will also be transmitted across networks. In fact, this trend is already being witnessed worldwide as business and consumer activities become increasing data-centric, with more and more activities moving online.
TeleGeography's recent Global Internet Geography Study indicates that internet traffic grew by 74% in 2009 and 62% in 2010. And Cisco's Visual Networking Index Forecast, 2009 - 2014, projects that global internet traffic will see more than a fourfold increase by 2014. Cisco point to rich media - and in particular video - as a key contributor to this growth.
The reality is that there is still room for much more growth, both as more rich content is pushed online, and as internet penetration increases. According to worldinternetstats.com, the internet penetration stood at 28.7% globally in 2010. Perhaps most significant is the fact that Asia, which already accounts for 42% of internet users worldwide, has a penetration rate of only 21.5% - below the global average and second lowest of the seven regions covered.
Clearly, there is a need for telecom companies not only to continue building out their networks, but also to focus on innovating for the future. Many companies are, of course, keenly aware of this need, and are pushing ahead with initiatives to address it. One such company is Alcatel-Lucent, which has set up its IP Transformation Centre (IPTC) in Singapore to help customers transform their networks to all IP architecture, providing them with a basis for growth in the future. Other companies have followed their lead, setting up data centres, regional offices and innovation centres in Singapore.
The Singapore difference
With a focus on state-of-the-art infrastructure and business-friendly policies, Singapore has rapidly established itself as a major international telecom hub. International telecom operators such as AT&T, BT, NTT Communications, Tata Communications and Orange have a strong presence in Singapore, providing a full range of services from telecom and mobile to hosting, IT services and cloud computing.
Recognising the advantages that Singapore offers, India's Tata Communications has established an office in Singapore to manage its international operations outside of India. It added to its investment in Singapore with the opening in September 2010 of its Tata Communications Exchange data centre, which is integrated into Tata Communications' Tier-1 IP backbone connecting Asia, Europe, North America and Africa.
China Unicom is another leading telecom company that has turned to Singapore to drive its push into the Asia-Pacific region. It marked the launch of its regional office in Singapore in September 2010, and at the same time set up a point of presence in a local data centre. The company plans to leverage Singapore's robust network connectivity, high-quality telecoms infrastructure and talented workforce to reach out to new markets.
Indeed, telecom companies looking for an edge in their regional operations will find a host of reasons to turn to Singapore. Its established track record, secure business environment and deep local and international talent pools contribute to Singapore's appeal, as does its clear strategy for further developing its position as the digital harbour of Asia. This strategy has three main thrusts: to improve connectivity within Singapore; to improve connectivity to Singapore; and to be a content hosting hub of Asia.
Locally, Singapore is setting an example with the rollout of the Next Generation Nationwide Broadband Network, which will provide ultra-high-speed broadband access to all buildings by mid-2012. This will drive the adoption of innovative next generation services such as IPTV and telepresence and make Singapore an ideal location for test-bedding such services before rolling them out to other markets.
Singapore also provides companies with a gateway to the region - it is the most connected country in South Asia, with 12 cable systems and a total submarine capacity of 52 Tbps. In September 2009, the Singapore Internet Exchange (SGIX) was established as a neutral internet exchange to offer an efficient traffic exchange services to domestic and international telecom carriers, internet service providers, and content and games providers. The SGIX saves companies from around the world from having to establish multiple international connections across the region.
Finally, Singapore aims to be not just a transit point for data and communications traffic, but also the destination of choice for hosting data in Asia. Currently, 50% of the data centre space in Southeast Asia is in Singapore. With a highly reliable power supply, low risk of natural disasters and supportive business environment, Singapore is emerging as a leader in hosting data centres, particularly mission-critical and cloud computing data centres.
Whether companies are looking to access an advanced local market, drive product and service innovation, enhance their network infrastructure, or set up a base for regional operations, Singapore provides clear advantages. And with the demands being placed on telecom infrastructure in the Digital Age, these are opportunities that cannot be ignored.
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