{"id":18029,"date":"2004-09-08T00:00:00","date_gmt":"2004-09-08T00:00:00","guid":{"rendered":"http:\/\/positioningmag.com\/?p=18029"},"modified":"2004-09-08T00:00:00","modified_gmt":"2004-09-08T00:00:00","slug":"asia-netcom-goes-back-basics-strategy-wi","status":"publish","type":"post","link":"https:\/\/positioningmag.com\/18029","title":{"rendered":"Asia Netcom Goes Back to Basics in Strategy to Wi"},"content":{"rendered":"
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BUSAN, KOREA, September 8, 2004 \u2013 In a keynote presentation at the ITU Telecom Asia 2004 Forum today, Asia Netcom\u2019s President and COO, Bill Barney, outlined the road to recovery and success for the telecom industry going forward.<\/p>\n

Looking back at the history of the telecommunications industry, Barney revisited the \u201cbig picture\u201d where, for a century, demand and supply for telecommunications services went hand-in-hand. Then, with the Internet, the paradigm shift began. With the initial explosion of Internet subscribers and the then inflated business model of online services, telcos, backed by hungry investors, rushed to build the supply infrastructure that would meet that apparent demand.<\/p>\n

\u201cOversupply inevitably led to price decline which led to the bubble burst. As many players exit markets, demand also began to decline. In the wholesale market, which many of the cable operators were focused on, the situation was serious enough that many went into Chapter 11,\u201d said Barney.<\/p>\n

\u201cBut if you look on the retail side,\u201d Barney continued, \u201cdemand still grew, although nowhere near the exponential rate that the first market projections indicated. While prices have declined, mainly due to changes in the regulatory environment of key hubs like Hong Kong and Singapore, the rate of decline was far from that of the decline rate in the wholesale market.\u201d<\/p>\n

Today, demand on the retail side is not an issue. No company today can operate without some kind of network connection \u2013 be that a simple Internet connection, or a full scale corporate WAN. Retail subscribers for broadband, mobile, wireless Internet and next generation applications such as video-on-demand, P2P services, VoIP and so on, continue to drive up traffic on the international network.<\/p>\n

These new applications and new regulatory requirements (such as the tighter global operational requirements for the financial sector following 9\/11) continue to drive up the requirement of transferring massive amount of data between markets.<\/p>\n

According to Barney, \u201cThe key is to develop a strategy which targets that demand — When demand is high and capex is tight, go where the customers are going, not where they are leaving. Profit comes from direct retail relationships \u2013 not through wholesale\u2026and agility is crucial.\u201d<\/p>\n

At Asia Netcom, the focus is to realign the business to address the market segments that are seen as having the highest growth potential, Barney said. \u201cTechnology-wise, we have focused on IP, as well as IP services, by introducing the region\u2019s first IP VPN offering with 5 CoS,\u201d he added. <\/p>\n

Owning and operating one of the region\u2019s largest IP backbones, 70% of Asia Netcom\u2019s capex this year will be focused on the edge of its network in enhancing the scope of servicing customers, whereas, in the past, the company spent more than 90% of its money on building up the core network.<\/p>\n

On the business side, Asia Netcom has found success in changing its sales organization to focus on the retail side, with revenue from enterprise sales now equalling more than half of its total sales, whereas more than 90% of the business came from carriers just a few years ago.<\/p>\n

Today, Asia Netcom is in a strong position to address the key growth segments, namely IP and corporate data services. Together with its ongoing efforts to increase operational efficiencies, the company has driven down its cash burn to close to 0, from US$60 million per month just two years ago.<\/p>\n

In conclusion, Barney assessed that \u201cdemand was never an issue for the telecom industry, but the real challenge is in bridging the gap between where the supplies are located with where customers are. That is the fundamental connection that the telecom industry needs to make going forward.\u201d<\/p>\n

About Asia Netcom<\/p>\n

Asia Netcom provides city-to-city connectivity and data communications solutions to pan-Asian and multinational enterprises, ISPs and carriers. Asia Netcom operates its own pan-Asian submarine and terrestrial fibre network and the region\u2019s leading MPLS platform powering advanced IP-based transport and networking services. Asia Netcom is wholly-owned by Chinese incumbent telecommunications operator, China Netcom. Combining China Netcom\u2019s vast mainland capabilities and Asia Netcom\u2019s region-wide reach, Asia Netcom is positioned to be the premier provider of comprehensive broadband network services for the Asia Pacific and to major business centres worldwide. For more information on Asia Netcom, please visit www.asianetcom.com<\/a><\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

BUSAN, KOREA, September 8, 2004 \u2013 In a keynote presentation at the ITU Telecom Asia 2004 Forum today, Asia Netcom\u2019s President and COO, Bill Barney, outlined the road to recovery and success for the telecom industry going forward. Looking back at the history of the telecommunications industry, Barney revisited the \u201cbig picture\u201d where, for a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[1],"tags":[139984,140790],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbkZC5-4GN","jetpack-related-posts":[{"id":17785,"url":"https:\/\/positioningmag.com\/17785","url_meta":{"origin":18029,"position":0},"title":"Asia Netcom delivers Regional Frame Relay Network for cosmetics-giant Revlo","date":"August 23, 2004","format":false,"excerpt":"SYDNEY, August 19, 2004 \u2013 Asia Netcom today announced that it has completed the rollout of a Frame Relay network for global cosmetics-giant Revlon. The new network connects the company\u2019s offices in Australia with other regional locations in the Asia Pacific, including Beijing, Guangzhou, Chengdu and Shanghai. The network, which\u2026","rel":"","context":"In "\u0e44\u0e21\u0e48\u0e21\u0e35\u0e2b\u0e21\u0e27\u0e14\u0e2b\u0e21\u0e39\u0e48"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26714,"url":"https:\/\/positioningmag.com\/26714","url_meta":{"origin":18029,"position":1},"title":"JUNIPER NETWORKS ROUTING PLATFORMS FORM CORE OF CHINA\u2019S NEXT-GENERATION INTERNET","date":"December 6, 2005","format":false,"excerpt":"BANGKOK, 1 December, 2005 \u2014 Juniper Networks, Inc. (NASDAQ: JNPR) today announced that its M- and T-series routing platforms have been selected for the core of the China Next Generation Internet (CNGI) project. 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2007","format":false,"excerpt":"\u0e40\u0e08\u0e35\u0e22\u0e07\u0e2a\u0e39 \u0e40\u0e17\u0e40\u0e25\u0e04\u0e2d\u0e21 \u0e04\u0e32\u0e14\u0e01\u0e32\u0e23\u0e13\u0e4c\u0e27\u0e48\u0e32\u0e01\u0e32\u0e23\u0e41\u0e02\u0e48\u0e07\u0e02\u0e31\u0e19\u0e01\u0e35\u0e2c\u0e32\u0e42\u0e2d\u0e25\u0e34\u0e21\u0e1b\u0e34\u0e01 2008 \u0e17\u0e35\u0e48\u0e01\u0e23\u0e38\u0e07\u0e1b\u0e31\u0e01\u0e01\u0e34\u0e48\u0e07 \u0e08\u0e30\u0e01\u0e23\u0e30\u0e15\u0e38\u0e49\u0e19\u0e01\u0e32\u0e23\u0e40\u0e15\u0e34\u0e1a\u0e42\u0e15\u0e02\u0e2d\u0e07 IPTV \u0e41\u0e25\u0e30\u0e1a\u0e23\u0e34\u0e01\u0e32\u0e23 Triple Play \u0e43\u0e19\u0e1b\u0e23\u0e30\u0e40\u0e17\u0e28\u0e08\u0e35\u0e19 \u0e40\u0e23\u0e49\u0e14\u0e41\u0e1a\u0e47\u0e04 \u0e40\u0e19\u0e47\u0e17\u0e40\u0e27\u0e34\u0e23\u0e4c\u0e01\u0e2a (Redback Networks Inc.) \u0e1a\u0e23\u0e34\u0e29\u0e31\u0e17\u0e43\u0e19\u0e40\u0e04\u0e23\u0e37\u0e2d\u0e2d\u0e34\u0e23\u0e34\u0e04\u0e2a\u0e31\u0e19 (Ericsson) 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\u0e1b\u0e25\u0e37\u0e49\u0e21\u0e44\u0e14\u0e49\u0e02\u0e36\u0e49\u0e19\u0e40\u0e1b\u0e47\u0e19\u0e1a\u0e2d\u0e23\u0e4c\u0e14\u0e02\u0e2d\u0e07 WBA \u0e40\u0e1e\u0e35\u0e22\u0e07\u0e23\u0e32\u0e22\u0e40\u0e14\u0e35\u0e22\u0e27","date":"February 3, 2009","format":false,"excerpt":"\u0e40\u0e1b\u0e47\u0e19\u0e1b\u0e25\u0e37\u0e49\u0e21\u0e2d\u0e35\u0e01\u0e04\u0e23\u0e31\u0e49\u0e07......\u0e17\u0e35\u0e48 \u0e17\u0e23\u0e39 \u0e1a\u0e23\u0e34\u0e29\u0e31\u0e17\u0e44\u0e17\u0e22\u0e40\u0e1e\u0e35\u0e22\u0e07\u0e23\u0e32\u0e22\u0e40\u0e14\u0e35\u0e22\u0e27 \u0e44\u0e14\u0e49\u0e02\u0e36\u0e49\u0e19\u0e40\u0e1b\u0e47\u0e19\u0e1a\u0e2d\u0e23\u0e4c\u0e14\u0e02\u0e2d\u0e07 WBA \u0e2b\u0e23\u0e37\u0e2d \u0e2a\u0e21\u0e32\u0e04\u0e21 Wireless Broadband Alliance 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