IP VPN Demand Experiencing Impressive Growth in Asia Pacific

Business Wire, Sept 3, 2007

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c67235) has announced the addition of Frost & Sullivan's new report: Asia Pacific International Data Services Markets - Strategic Analysis on Pricing to their offering.

This Frost & Sullivan research titled Asia Pacific International Data Services Markets - Strategic Analysis on Pricing provides great insight on dynamics of Asia Pacific international data service market. This study focuses primarily on the pricing aspect data services in the region and provides an in-depth analysis of the driving of price trends in the region. It also investigates emerging International Ethernet service. In this research, expert analysts thoroughly examine the following markets: international data services, asynchronous transfer mode (ATM), frame relay, international private leased circuit (IPLC), IP VPN, IP transit, International Ethernet, and local loop circuit.

This analysis is available through our Communication Services Growth Partnership Service program. With this program, clients receive industry-leading market research such as this, along with technical and econometric data and many interactive features including Analyst Inquiry Time and Client Councils. For more information on this custom subscription service, please click here.

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The following technologies are covered in this research service:

* Asynchronous Transfer Mode (ATM): ATM is a dedicated connection-switching technology that organizes digital data into 53-byte cell units and transmits them over a physical medium, using digital signal technology.

* International Ethernet: International Ethernet is a cost-effective connectivity solution that is customized for enterprises that require greater resilience, flexibility, and capacity for their global networks. The service promises the benefits of scalable bandwidth, capability to support high-bandwidth applications, competitive local access costs, efficient network transport interface, and higher customer routing privacy.

* Frame Relay (FR): Frame Relay is a cost-efficient data transmission technology for intermittent traffic between LANs and end points in a wide area network (WAN).

* International Private Leased Circuit (IPLC): IPLC is a point-to-point private line used by an organization to communicate between offices that are geographically dispersed throughout the world. An IPLC can be used for Internet access, business data exchange, video conferencing, and other forms of communication.

* Internet Protocol Transit: Internet protocol transit is the transmission of IP traffic across the network backbone.

* IP Virtual Private Network (IP VPN): IP VPN is a virtual private network (VPN) based on IP, which is fast, reliable, flexible, and accessible by remote workers, suppliers, and customers.

Market Overview

Data Services Price Decline Slows Down as the Highly Competitive and Price-sensitive Asia Pacific Market Recovers from Bandwidth Abundance

While the international data services market in Asia Pacific is experiencing a steady growth in demand, intensifying competition is forcing prices down and restraining revenue growth. Taking advantage of the intense competition in the market, data service customers are negotiating better discounts based on the duration and the value of contracts. While international private leased circuit (IPLC) prices in the Asia Pacific have declined by 8 to 15 percent year-on-year, frame relay (FR) and asynchronous transfer mode (ATM) prices have dropped by an average of 15 to 20 percent since early 2005. The Indian market is expected to undergo radical changes as the Government plans to open up the resale market and the globalization trend is set to instigate similar deregulation in other regulated markets. This move will foster fierce competition from international and regional carriers, putting further pressure on price. The trend will be less obvious in regulated markets such as China and Malaysia, where domestic incumbents dominate the market and face less competitive pressure.