Asia's Biggest Phone Companies Set to Sign $1 Bln Cable Network
Agreement
Korea Telecom Corp.,
Hong Kong Telecommunications Ltd. and eight others, is also a
sign that companies are gearing up for a pick up in demand for
goods and services in the region.
''Phone companies realize they have to capture capacity
early to maintain growth, and to maintain their dominance,'' said
Daniel Widdicombe, a telecommunication analyst and managing
director at Bear Stearns Singapore Pte. ''They are rushing to tie
in capacity in expectation of a huge jump in data connections.''
Widdicombe expects data usage to expand between 40 percent
and 50 percent annually in Asia, with more business
communications and a heavier use of the Internet.
The number of Internet users in Asia outside of Japan is
expected to expand 35 percent a year to 57.5 million by 2003,
said International Data Corp. The market researcher also expects
data revenue for the region to increase at an average of 32
percent a year to $18.5 billion by 2002, twice the pace of voice
revenue growth.
''The use of wireless, data and the Internet will continue
to increase in Korea, driving earnings growth,'' said Hong Sung
Han, manager of Korea Telecom's international submarine cable
division. ''Korea Telecom is the most aggressive investor'' in
the project, he said, declining to be specific.
quote.bloomberg.com
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