The Internet and Networks in Asia Thomas Dijohn Vice President, Asia Pacific The Fantastic Corporation
The Fantastic Corporation Swiss company founded in February 1996 Offices: Zug, Lugano,, New York, Washington DC, San Francisco, London, Hamburg, Paris, Milan, Singapore, Sydney and Tokyo. 140 Full Time Employees World Class Investors and customers. Intel Deutsche Telekom Telecom Italia Reuters Jafco
Broadband Multimedia Distribution
The Internet and Networks in Asia
Internet Growth
Marketplace Changes Internet Explosive Growth (20 Millions users online in 1998 to 45 Millions in 2002) Transformation from text-based to rich multimedia content Inexpensive and easy way to communicate
Marketplace Changes Internet Telecommunication Networks Deregulations everywhere Infrastructure improvements Surge in Data traffic
Data Overtakes Voice 50 45 40 35 Voice Data 30 25 20 15 10 5 0 1995 2000 2005
Marketplace Changes Internet Telecommunication Networks Deregulations everywhere Infrastructure improvements Surge in Data traffic Deployment of broadband networks (ADSL, ATM, Satellite, Cable)
Satellite Boom North America 16 44 Asia Pacific 20 44 Europe 15 40 Latin America Mideast Africa 2 0 1 4 8 10 Existing On-Order Atlantic Ocean 5 26 Pacific Ocean 1 10 Indian Ocean 3 10 Source: Via Satellite, July 1998 0 5 10 15 20 25 30 35 40 45 Number of Satellites by region
Asia Pacific digital dish basic subscribers (000) 9,918 India Japan Indonesia Malaysia 8,040 Subscribers (000) 8000 6000 4000 2000 New Zealand South Korea 1,700 3,802 Philippines 5,878 Chinese Taipei 0 % of TV households 1998 2000f 2002f 2004f 2006f 0.3% 0.7% 1.1% 1.5% 1.8% Source: Baskerville Communications Corp.
Marketplace Changes Internet Telecommunication Networks Convergence in Media
Convergence - Technology Complex Interaction Online Games Web Surfing Electronic Commerce, Web shopping Email Video Conference Simple Interaction EPG, Game Shows, Impulse PPV Account Info Broadcast Data Financial Services, Catalog Sales, Impulse Ordering PC supported telephony Passive Telephone Direct response advertising Entertainment Information Commerce Communication Source: INTECO Corporation, 1997
Asia s s Technology Wealth COUNTRY OR REGION TECHNOLOGY PENETRATION IN ASIA POPULATION (IN MILLONS) PHONES PER 100 PEOPLE TVs PER 100 PEOPLE PCs PER 100 PEOPLE Industrialized Asia-Pacific* 147 49 65.4 17.4 China 1,232 4.5 25.2 0.3 India 929 1.3 6.1 0.1 Indonesia 200 2.1 22.9 0.5 Malaysia 21 18.3 21.9 0.4 Philippines 69 2.6 13 1 Thailand 60 5.9 23.3 1.7 * Australia, Japan and New Zealand SOURCE: ITU
Challenges Internet users is rapidly increasing The Internet is a niche service (less than 3% of the global population) Internet content is becoming more rich Still only a fraction of the global content is on the Internet PCs are moving into households
Opportunities Broadband networks widely available Identified need for active distribution of rich multimedia content Willingness from end-users to pay for quality content Business for each player in the value chain
Why Broadband? Breaks the Bandwidth Bottleneck! Data Speed (Mbps) 30 20 10 0 0.056 0.128 0.6 Analog ISDN ADSL (low) 12 ADSL (high) 30 Cable 32 Satellite Media
What are the implications? Wide adoption of Open systems and standards - IP, MPEG2, DVB etc. Raft of new and compelling applications will emerge, including multimedia content and interactivity Market Shakeout
Implications New knowledge required to tackle market transformations Lower barriers to entry are bringing in new players Small, nimble players are starting to attack established markets
Established players have to move! New players are upsetting the balance of power Established leaders should leverage their position to claim their stake First mover advantage is critical! Amazon.com CNN
Broadband Multimedia Value Chain CONTENT PROVISION COLLECTION AND EDITING TRANSPORT DISTRIBUTION ACCESS APPLICATION Create and deliver content Build channels, operation, scheduling, EPG, playout Bandwidth, sales, support
Broadband Multimedia
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