TM Global executive VP Rozaimy Rahman explains why telcos can no longer rely on pure bandwidth services as a viable way to generate profit and have to redefine their operating boundaries
Telecom Asia: How important is fiber for telcos to be able to boost their revenues as data consumption soars?
Rozaimy Rahman: The cable network is the backbone of telecom and is the basis upon which revenues are generated. As data consumption soars, networks need to be prepared to absorb the expected growth in demand. Constant investment in network upgrades is a must, and this is not something that comes cheap. Proper planning will guarantee that the network will be able to handle future loads in the most cost-effective way. An investment at the right time and at the right price in domestic and international fiber backbones is essential in ensuring that the telecom industry will continue to remain a profitable business.
Where do you see the biggest potential for telcos with next-gen networks to grow their revenue?
NGN is about future-proofing the network. It involves a heavy initial investment with a return that may not be apparent straightaway. The decision to migrate TM's legacy network to NGN was not something that was taken lightly. Carriers are unnecessarily being burdened by legacy networks and are being distracted from their original mission, which is to create value for customers.
By migrating everything onto a single IP core platform, we are free to be more innovative. VAS can now be developed easily, cheaply and at a faster pace, and can then be bundled with traditional offerings to create more value for clients.
Lately, the growth in the number of mobile broadband subscribers has increased the demand for international connectivity from mobile service providers. This increase has also given rise to another trend - mobile data offload where mobile users migrate temporarily to fixed network when they are stationary. The favorite complimentary network technology is Wi-Fi. With the increase in mobile broadband take-up, there is potential revenue to be realized from the temporary migration of mobile users to fixed network.