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APAC data centre market records significant growth

Ranine Awwad

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APAC data centre market records significant growth

A new report by Tariff Consultancy Ltd service Datacentrepricing states that cloud and data centres in the Asia-Pacific region are among the fastest-growing in the world.

“The Cloud and Data Centres Markets in the Asia-Pacific” report assesses the market landscape of cloud and data centres across eleven countries including Australia, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Singapore, Taiwan, Thailand, and Vietnam, according to Developing Telecoms.

The average population per head in the Asia Pacific Region is 522 per m2 of data centre space, according to the Datacenterpricing press release published on September 10, 2020.

China is considered the second-largest data centre in the world and the first in Asia-Pacific with 43% data center space, according to the report. As for Australia and Hong Kong, the countries have secured second place with 11% data centre space in the region. Singapore secured fourth place with a 10% data centre space. The report didn’t exclude other countries in the Asia-Pacific region and expects smaller data center growth especially in South Korea, Taiwan, Thailand, and Vietnam. On the other hand, a new research led by Cushman & Wakefield shows that Hong Kong is considered the fourth most attractive data center location in APAC.

The Asia-Pacific data center market is expected to grow at a CAGR of over 3% during the period 2019-2025, according to GlobeNewswire. On the other hand, the introduction of Artificial Intelligence is expected to contribute over 40% in the infrastructure investment in the region by 2025, states the same source.

The deployment of the high-speed 5G network – including China – is expected to boost the data centre market. “The growing importance of Internet of Things (IoT) applications, the impending 5G network, and fast adoption rates of cloud computing as well as the post-COVID-19 ‘new’ normal are the four major factors driving the surge in demand for cloud storage”, said Eric Chong, Cushman & Wakefield’s Associate Director of Research, Hong Kong, according to Taiwan News.

Moreover, John Siu, Cushman & Wakefield’s Managing Director, Hong Kong, said that the government should consider allocating more land lots for data center use, according to the same source.

Ranine joined Inside Telecom as an Investigative Journalist. Her extensive fieldwork and investigations shed light on many socio-economic issues. Over the past few years, she has transformed her key findings into in-depth analytical reports. She earned a Bachelor’s Degree in Journalism and Communication.

Telecoms

Major Thai telecom operator steps into bitcoin mining

Hala Turk

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Thailand-based mobile operator Jasmine Telecom Systems (JTS) announced last week its Bitcoin mining plans to become the largest miner in Southeast Asia by 2024.  

The Thai telco, which is a subsidiary of telecom operator Jasmine International (JAS), aims to install 500 bitcoin mining machines at its Jastel Data Center during the third quarter of this year. 

This step is considered rare, especially that several telcos are primarily interested in blockchain, yet few are concerned about cryptocurrency. 

“Now is a good time for JTS to invest in bitcoin mining, given its widespread adoption and the incident in China that caused the hash rate to drop to an eight-month low,” said Dusit Srisangaoran president of JTS.  

By the year 2022, the company will look to scale its mining operation ten-fold, installing a further 5,000 machines in partnership with the Jastrel Network at industrial locations around Thailand. 

After this stage, JTS will bring 50,000 machines online, scaling its operation 100-fold before the next bitcoin halving, that occurs almost every four years, or once every 210,000 blocks, and is next scheduled for 2024. 

JTS declared that it would bring “about 5 exahashes of power onto the network, which, even by the next halving’s standards, would be an impressive percentage of global mining power, and would make JTS the largest bitcoin mining operation in Southeast Asia.” 

This will lead the company to mine about 16,000 bitcoin per year. 

JTS revealed it plans to have a mining capacity of more than 5 exahash per second, or 5 percent of the total global mining capacity, making it the largest Bitcoin mining farm in the Association of Southeast Asian Nations ASEAN. 

It’s worth mentioning that ASEAN include ten countries Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. 

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Telecoms

BT, Microsoft partner to enhance voice calling

Hala Turk

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London-based telecom provider BT partnered on Thursday with Microsoft to enhance enterprise voice calling, security, and industry-focused services in various sectors. 

The new agreement will allow BT to switch its global managed voice services to the cloud and deliver them directly through Microsoft Teams. 

Microsoft’s Operator Connect plan, that supports telecom operators adding their calling plans to Microsoft Teams, will help the British partner to create new business models and revenue streams. 

According to Microsoft’s blog post this deal “paves the way for the development of revolutionary new cloud-based products and services for BT’s voice customers and the wider telecoms sector.” 

As for cybersecurity part of the deal, the pair will work together to build and launch a new generation of managed security services that will enable and secure the modern collaborative workplace. 

The British provider will team up with the U.S. tech giant to create unique security propositions to protect clients’ operations in the cloud as well as its own IT infrastructure. 

“BT and Microsoft are at the forefront of innovation in global digital platforms and connectivity that will take technology and communication beyond limits,” Bas Burger, CEO of Global at BT, and executive sponsor of BT’s partnership with Microsoft said in a joint statement.  

“This partnership will ensure all of Microsoft’s solutions work ‘Best on BT’ and support both companies’ commitments to improving digital skills in the community,” Burger added. 

In parallel, Omar Abbosh, corporate vice president of industry solutions at Microsoft, considered the partnership as the “start of an exciting, shared journey of innovation and collaboration that will shape the future of telecoms.” 

Abbosh further explained that BT can use Microsoft’s cutting-edge tools to develop new communications services that meet the needs and demands of today’s customers. 

It is worth mentioning that the number of users of BT’s managed Microsoft Teams collaboration service has almost doubled during the past 12 months, according to the pair. 

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Telecoms

5G drives Chinese mobile service to rise at 3.1% in 2026

Hala Turk

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Chinese mobile service revenues are expected to grow at a compounded annual growth rate CAGR of 3.1 percent from $131.3 billion in 2021 to $152.7 billion in 2026, according to a study published on Thursday.  

London-based data analytics company, GlobalData published a study showing that the mobile data revenues will witness a rise in its CAGR reaching 6.8 percent due to the growing adoption of 5G services, followed by the rise in data Average Revenue Per Unit (ARPU). 

“5G subscriptions will surpass 4G subscriptions in 2023 and go on to account for 73.8 percent of the total mobile subscriptions share in 2026, driven by the ongoing 5G network expansion by operators and increase in the availability of 5G-enabled smartphones,” said Harika Damidi, Telecoms Analyst at GlobalData. 

In parallel, findings indicate that the average mobile data usage is expected to increase from 9.9GB per month in 2021 to around 32.6GB per month in 2026, as a result to the mounting consumption of high-bandwidth online entertainment and social media content over smartphones. 

However, data revealed that the mobile voice revenues are supposed to drop at a CAGR of 5.2 percent between 2021 and 2026, due to falling voice ARPU levels. 

Damidi explained that the increase in penetration of Internet of Things (IoT) and M2M services are also expected to drive market growth during the forecast period. 

The analyst further highlighted that two state-owned companies had led the Chinese telecom market in terms of mobile subscriptions last year.  

Damidi said that China Mobile ranked first followed by China Telecom, explaining that China Mobile “is making strategic investments in 5G base stations, data centers, industrial Internet, and IoT to ensure its leadership.” 

It is worth mentioning that, in 2020, China mobile generated a revenue of $118.8 billion, in comparison China Telecom’s $60.91 billion during the same year according to Statista.  

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