10G offers in SEA: Chinese vendors cash in on dynamic Asian markets

Two weeks ago, Malaysian Internet service provider (ISP) U Mobile launched the “U Biz Fibre 10Gbps plan”, aimed at delivering ultra high-speed connectivity to business customers. Quite remarkably, the new offer was neither awaited nor had it been massively marketed by the company beforehand. Of course, the new package would have been promoted much more if it targeted the consumer segment. However, the minimalist approach adopted by the ISP shows that such offers have become less outstanding in the country. As Southeast Asia, one of the most quickly developing regions in the world, is a highly heterogeneous region, it is unclear whether the Malaysian market mirrors the regional trend. Hereafter, the analysis of announcements made to promote offers enabling 10G+ connectivity in the region will shed light on the increased demand for high-speed internet and its implications for households. Let us also discuss whether Southeast Asian markets seem to follow the path of more advanced regions such as Europe and North America, and if the winning technologies and partners are the same. 10G+ offers are being announced at an increased pace In Southeast Asia like elsewhere, the incumbent operators such as Telkom Indonesia and True Thailand have long offered dedicated lines to companies with specific needs. To target these specific segments, point-to-point (P2P) ethernet could be deployed and reach 10Gbps. Let us keep these offers, which have targeted very few users and have had very high price points, aside, and focus on announcements promoting such speed at a network scale.  The focus here is on the announcement date of the technological improvement or commitment rather than on the commercial launch. It thus mirrors the project implementation decision-making, and not its realization on the market. Therefore, offers based on 10 Gbps or higher speed are still rare. However, they will multiply in the next few years, as more and more operators announce tests or upcoming launches.   The demand for lightspeed connectivity will keep on growing strongly Chances are that the growing appetite for ultrafast broadband keeps on driving up the number of such offers. The macroeconomic context is favorable to ISPs, with Southeast Asian economies developing fast, thus needing more top-notch network services. This trend is notably illustrated by the recent rush for data centers implementation and investment in the region. Not only do local businesses emerge as potential customers for ISPs, but foreign companies also capitalize on the favorable business conditions. The cost of deployment of such solutions is remarkably lower in Southeast Asia than in the most developed parts of the world, thus boosting their implementation, as businesses needing it  access low-priced offers. In addition, public authorities can also step in to further drive the rollout of ultrafast...