The strategic importance of network infrastructure in the Asia Pacific cannot be overstated. Economically, robust network infrastructure enhances competitiveness, enabling countries to attract foreign investment, support high-tech industries, and boost productivity. Additionally, expanding this infrastructure is crucial for bridging the digital divide, especially between urban and rural areas.
By extending high-speed internet and digital services to remote communities, governments and private entities can promote inclusive economic growth and improve the quality of life for millions. Moreover, the growth of emerging technologies such as 5G, IoT, and cloud computing depends heavily on advanced network infrastructure, which is essential for enabling innovation and driving the digital transformation of various industries.
Also Read: Forging the Future: How Submarine Cables Lay the Groundwork for Digital Transformation in Asia
Key Projects and Investments in the Asia Pacific
Several key projects and investments are currently driving the expansion of network infrastructure across the Asia Pacific, spearheaded by both public and private sectors. The Asian Development Bank (ADB) has played an essential role, particularly through initiatives like the “Pacific Islands Digital Connectivity Investment Project,” which aims to enhance internet access and connectivity in the Pacific Islands by upgrading submarine cables, terrestrial fiber-optic networks, and satellite systems.
In the private sector, Expereo, a global provider of managed internet and cloud access services, has been actively expanding its network infrastructure across the Asia Pacific. This expansion is crucial for delivering reliable and high-performance internet and cloud services to businesses, especially multinational corporations operating in the region. Similarly, Amazon Web Services (AWS) has strengthened its presence in the Asia Pacific by launching a new infrastructure region in Taiwan. This move is expected to enhance cloud-computing capabilities and support the digital transformation of businesses across Taiwan and neighboring countries.
Another significant development is the expansion of Netmore Group's operations into the Asia Pacific, where they are delivering LoRaWAN network services. LoRaWAN, a low-power, wide-area networking protocol designed for IoT applications, is expected to facilitate the deployment of IoT solutions across various industries, including smart cities, agriculture, and manufacturing, contributing significantly to the region's digital infrastructure growth. The APNIC Foundation has also highlighted the need for increased investment in internet development across the Asia Pacific, focusing on expanding infrastructure, improving cybersecurity, and enhancing digital skills to ensure reliable and affordable internet services across the region.
Telecom Review Asia Exclusive Interview: Agility in Global Connectivity: Re-Shaping the International Infrastructure Ecosystem
APAC’s Evolving Network Infrastructure
The Asia Pacific is experiencing a significant surge in network infrastructure expansion, driven by the efforts of key companies and initiatives that are shaping the digital landscape.
Globe Telecom is at the forefront of this expansion in the Philippines, actively improving its network infrastructure through extensive site builds and upgrades across the country. This initiative aims to enhance connectivity and provide better service to its growing customer base.
Meanwhile, in Pakistan, Zong 4G has rapidly expanded its network by adding 400 new sites, making it the country's second-largest data network as of July 2024. This expansion is crucial for improving data accessibility and supporting the growing demand for digital services.
EdgePoint Infrastructure is another key player extending its reach across Southeast Asia. The company's focus on developing and upgrading telecom towers is essential for supporting the region's growing mobile and data traffic.
Similarly, CDNetworks has unveiled substantial network upgrades, boasting a 10 Tbps capacity, which is critical for supporting high-speed internet services across the region.
In New Zealand, One NZ received regulatory clearance in May 2024 to expand its 5G network, ensuring broader coverage and faster speeds for its users. Additionally, Telstra International, in partnership with Trans Pacific Networks, launched the Echo subsea cable, a major infrastructure project that enhances connectivity between the Asia Pacific and other global regions.
Read More: Managing Network Complexity in Asia-Pacific Telecoms
Challenges and Opportunities in Expanding Network Infrastructure
Despite the significant progress in expanding network infrastructure, the Asia Pacific faces several challenges. The region's geographical diversity, characterized by islands, mountains, and vast rural areas, poses logistical and financial difficulties for infrastructure development. For instance, building submarine cables to connect remote islands or deploying fiber-optic networks in mountainous regions requires substantial investment and expertise. However, these challenges also present opportunities for innovation, such as leveraging satellite and wireless technologies to provide connectivity in hard-to-reach areas.
Regulatory and policy barriers further complicate infrastructure expansion. Key governing bodies like the Telecom Regulatory Authority of India (TRAI), the Australian Communications and Media Authority (ACMA), and China's Ministry of Industry and Information Technology (MIIT) enforce these regulations. Additionally, data privacy and localization laws, environmental protection acts, and land acquisition laws further complicate infrastructure development. Regional frameworks like the Asia-Pacific Telecommunity (APT) and international trade agreements under the WTO also influence the regulatory landscape, leading to high costs, legal complexities, and project delays.
Expanding on the role regulatory barriers play in network expansion, Dino Civitarese, Vice President at e& Carrier & Wholesale for the Asia & Pacific region (APAC), said, “Our growth from the Middle East and Africa market into the wider Asia region began when, in 2018, the Singaporean Government awarded us a facility-based operator license (FBO). The license allowed us to invest and build infrastructure for the domestic wholesale market and open opportunities for the international market. Through this infrastructure, we have been able to serve customers in the Asia Pacific and the Middle East, extending our reach to fast growing markets such as Indonesia, Malaysia, Thailand, Vietnam, Philippines.”
Additionally, the expansion of network infrastructure heightens concerns around cybersecurity and data privacy. The rise in cyber threats across the Asia Pacific underscores the need for comprehensive strategies, including investments in cybersecurity measures, adoption of international best practices, and enhanced cross-border collaboration.
Financing remains a critical challenge in expanding network infrastructure, as these projects require significant financial resources. While public sector funding is crucial, private sector investment is equally important. Innovative financing mechanisms, such as public-private partnerships (PPPs), can help mobilize the necessary resources. International organizations like the ADB also play a vital role by providing financial support and technical expertise.
Furthermore, the expansion of network infrastructure must consider sustainability and environmental impact, with a focus on minimizing carbon footprints, reducing e-waste, and ensuring that projects do not harm ecosystems or local communities.
Read More: Evolving Automation Requirements for Advanced Communications Networks
The Role of 5G and Emerging Technologies
One of the most significant developments in the Asia Pacific's network infrastructure expansion is the deployment of 5G networks. 5G technology promises to revolutionize connectivity by offering ultra-fast speeds, low latency, and the capacity to connect a vast number of devices simultaneously. Countries such as China, South Korea, and Japan have been leading the way in 5G deployment, investing heavily in infrastructure, including new base stations, network upgrades, and 5G-enabled devices. The widespread adoption of 5G is expected to transform industries like manufacturing, healthcare, and transportation, enabling new use cases and business models.
In Vietnam, the government's decision to discontinue 2G services by 2026 is paving the way for a significant boost in 4G and 5G networks, further supporting the country's digital transformation efforts.
The expansion of 5G infrastructure also accelerates the development of smart cities in the Asia Pacific. By leveraging IoT devices and data analytics, smart cities can improve urban services, such as traffic management, waste management, and energy efficiency. Expanding network infrastructure is essential for implementing these IoT solutions, which enhance residents' quality of life and promote sustainable urban development.
Additionally, the growth of cloud computing and the emergence of edge computing are closely linked to network infrastructure expansion. The broader APAC region is also seeing remarkable growth in cloud infrastructure, with the market expected to soar towards USD 593.7 billion by 2032. This growth is indicative of the increasing reliance on cloud services, which require robust and extensive network infrastructure. Cloud computing offers businesses scalable and flexible computing resources, while edge computing brings processing power closer to data sources, enabling real-time data processing for applications like autonomous vehicles and smart grids.
