As businesses increasingly adopt cloud computing, artificial intelligence (AI), and Internet of Things (IoT) applications, the demand for low-latency networks has surged. These networks, which ensure minimal delay in data transmission, are becoming essential for powering real-time applications and supporting the region’s growing digital infrastructure.
The APAC region is experiencing an unprecedented digital transformation, fueled by the rise of e-commerce, digital payments, and remote work. According to Equinix's Global Interconnection Index (GXI) Volume 5, interconnection bandwidth in APAC is expected to grow at a compound annual growth rate (CAGR) of 46%, reaching 6,002 terabits per second (Tbps).
This growth is largely driven by the region’s expanding e-commerce market, which is expected to surpass USD 6 trillion by 2030. Moreover, a survey conducted by Ciena revealed that more than 70% of data centers across Asia are now connected to networks offering speeds greater than 100 megabits per second (Mbps) to enterprises. This high-speed connectivity is essential for supporting next-generation technologies that require low latency, such as virtualization and mobility.
With more businesses shifting their operations online, the need for low-latency networks to ensure seamless customer experiences is more critical now more than ever. Additionally, the rapid adoption of Industry 4.0 technologies in manufacturing, logistics, and telecommunications has heightened the demand for reliable, high-speed connectivity.
According to Chip Strange, Chief Strategy Officer at Ookla, the global connectivity landscape has evolved massively since the turn of the century.
In terms of fixed networks, we've transitioned from a world dominated by basic broadband to one where high-speed, low-latency connections are increasingly essential for everything, from remote work and education to entertainment and critical infrastructure.
Why Low Latency Matters
Low latency refers to the minimal delay in data transmission, often measured in milliseconds (ms). For applications like video conferencing, online gaming, financial trading, and telemedicine, even the slightest delay can result in poor user experiences (UX) or financial losses. In APAC, where major financial hubs and multinational corporations operate, maintaining low latency is vital for real-time decision-making and business continuity.
Furthermore, low-latency networks support smart city applications, autonomous vehicles (AVs), and industrial automation. These technologies require instant data processing and analysis, which can only be achieved through robust, low-latency infrastructure.
Low Latency, Heightened Connection
The journey toward ultra-low-latency solutions began with early 5G advancements, such as the verification of 5G enhanced mobile broadband (eMBB) slices by China Mobile, Tencent, and Huawei in 2018. Their efforts demonstrated the potential of stable latency for AR gaming, showcasing how 5G slicing could enhance immersive digital experiences.
Fast-forward to 2024 and companies like StarHub and Global Switch have established low-latency interconnections. StarHub’s Ultra-Low Latency Data Centre Connect was launched to facilitate on-demand connectivity, reducing latency between data centers and improving service delivery for enterprises.
Meeting 2025’s demand for AI and high-performance computing (HPC), HKT launched Asia’s first 800 Gbps AI Superhighway WAN solution, providing ultra-fast, low-latency, and secure fiber-based connectivity to support supercomputing applications. Similarly, Globe successfully piloted 50 Gbps passive optical networking (PON), surpassing the capabilities of existing 10 Gbps networks, consequently delivering lower latency and improved efficiency for both residential and business users.
Advancements in 6G development have also focused on latency improvements. SK Telecom (SKT) has been at the forefront of this evolution, integrating low-latency technologies to pave the way for next-generation networks. Notably, intelligent reconfigurable surfaces (IRS) have also emerged as a promising low-latency coverage solution, further optimizing ultrafast 6G connectivity (a requirement for advancing APAC’s digital economy).
Key Drivers of Low-Latency Network Expansion
- 5G Deployment: The rollout of 5G networks across APAC is catalyzing the demand for low-latency connectivity. Boasting ultra-fast speeds and reduced latency, 5G enables immersive experiences such as augmented reality (AR), virtual reality (VR), and interactive gaming. Countries such as South Korea and China are leading in 5G adoption, enhancing connectivity for businesses and consumers alike.
- Data Center Growth: Colocation data centers are expanding rapidly to meet the increasing demand for low-latency services. Companies are investing heavily in establishing data center campuses across the region.
- Cloud and Edge Computing: As enterprises migrate to the cloud, edge computing has emerged as a critical solution to reduce latency. By processing data closer to the source, edge computing ensures faster response times for latency-sensitive applications. In an exclusive interview with Telecom Review Asia at ATxSG, Singapore, Duncan Kenwright, Managing Director of Global Solutions at Verizon, explained that edge computing also creates flexible workload environments.
Edge functions aggregate services without extensive on-site equipment, allowing virtualization in an edge environment for remote access. This approach streamlines analytics delivery and equipment deployment, benefiting various sectors.
Connecting the Niches Powering APAC’s Digital Economy
The enterprise and industrial sector is being revolutionized by the integration of AI-powered, low-latency solutions.
NTT DATA and its partners advanced smart factory inspections using NTT DATA’s Innovative Optical and Wireless Network (IOWN) APN, ensuring high-speed and low-latency communication across industrial applications.
Meanwhile, the security and public safety sector is leveraging low-latency capabilities to enhance critical operations. Singtel, DSTA, and HTX collaborated to implement nationwide 5G network slicing, providing high-speed, low-latency, and reliable connectivity to improve situational awareness, threat detection, and command-and-control processes.
In the consumer space, Smart Communications introduced the Philippines' first 5G Max City, facilitating ultra-fast, ultra-low-latency connectivity for content creators, streamers, and gamers. The initiative marks a step toward expanding the 5G experience nationwide and unlocking new opportunities for digital innovation.
These developments collectively illustrate the growing importance of low latency across industries, from gaming and AI to enterprise solutions and security.
Impact on SMEs and Enterprises
Low-latency networks are particularly beneficial for small and medium-sized enterprises (SMEs) in APAC. With limited budgets, many SMEs rely on colocation services and cloud solutions for their digital operations. Low latency ensures their applications run smoothly, enhancing customer satisfaction and operational efficiency.
Financial services, e-commerce platforms, and content delivery networks (CDNs) also depend on low latency to deliver real-time experiences. For example, in financial trading, milliseconds can mean the difference between profit and loss. Similarly, video streaming platforms require low latency to provide buffer-free viewing experiences.
Low-Latency Infrastructure for the Future
As digitalization continues to accelerate, low-latency networks will remain a linchpin of APAC’s digital economy.
Governments are supporting this growth by establishing regulatory frameworks that encourage investment in network infrastructure. Additionally, partnerships between telecom operators, cloud providers, and data center companies are further driving innovation and network expansion.
In conclusion, low-latency networks are not merely a technological advantage; they are a necessity in today’s digital-first landscape. As APAC economies continue their upward trajectory, businesses that leverage low-latency infrastructure will be well-positioned to lead in the digital age.
