| | FEBRUARY 202419percent likely to exit or become MVNOs assuming three-player markets. Only 17.8 percent of major mobile operators in APAC will become techcos".But the telecom sector is still facing obstacles to expansion from all directions, including low subscriber growth, revenue, investment, high-interest rates, weakening currencies, and other factors that call for a hyperefficient paradigm.Inadequate FundsBusinesses require new asset ownership structures, improved technology, and innovative business models to develop the digital backbone successfully and sustainably. Telcos in the area will require an extra $40­60 billion in funding over the next five years to do this.A Lot of Renovation Required in Many AreasTelcos may find it challenging to finance the infrastructure independently in the current scenario. Operators will have to update their business plans and asset ownership. To serve Southeast Asia's expanding smartphone user base, mobile internet infrastructure needs to be strengthened. This entails implementing 5G technology, improving current infrastructure for better speeds, and extending network coverage.The Bar is High on Performance ExpectationsAccording to Quah, there are not many expectations for expansion, particularly in the area of connectivity. The pandemic and other causes have made the world more digital and hyperconnected, raising the bar for performance from digital enterprises. Change is happening faster, with more agile software companies contributing to the difficulty levels and markets becoming more competitive. The current situation is worsening for mobile carriers; although the pandemic has forced them to deploy some digital solutions, the majority are still in the process of going totally digital and digitally first. Moving from consumer logic to growth logic is a challenging shift that will likely take another one to two years to finish, and not all mobile operators will be able to accomplish it.The industry could whisk its efforts on data center colocation, a growing trend that involves renting space for computers and other technology, such as servers.Make Do with What You HaveWith an abundance of land resources that could offer economic competitiveness, nations like Malaysia and Vietnam have emerged as desirable locations for data center investments.Build Data Centers on Available LandAccording to research firm Arizton, Malaysia's data center business is actually predicted to grow to a value of over $2 billion by 2028. Contributions from providers like Google, Alibaba Cloud, and Meta will help the Malaysian wholesale colocation sector expand. Low-cost, dependable electricity resources and reduced development costs are advantages for nations such as Vietnam.Change the Way of Making Investment Strategies in These Data CentersInvestment company decision-makers could respond to the changes in the independent and telco data center markets by adopting more adaptable and smart investment strategies. They can also take a holistic strategy that makes use of industry knowledge, regulatory analysis, and market insights. Investors can find the most attractive possibilities and place the proper bets by carefully evaluating the market potential.If companies are prepared to change their ownership and business models, Southeast Asia's expanding digital market offers enormous potential for independent data center operators, telecom providers, and tower companies.To stay ahead of the curve, it is more important than ever to recognize the potential effects of disruptive technologies and business models in the telecom industry and to make plans appropriately. QUAH FURTHER ASSURED, "THE OUTLOOK FOR 5G SA IS POSITIVE AS MORE COUNTRIES EMBARK ON THEIR 5G ROLLOUT PLANS AND DEVICES THAT SUPPORT 5G SA BECOME AVAILABLE
< Page 9 | Page 11 >