SingTel Should Appeal To OTT Players, Not Regulators

Clement Teo

At Mobile World Congress 2014 in Barcelona, SingTel CEO Chua Sock Koong was reported as “call[ing] on Australian regulators to give carriers like Optus the right to charge rivals WhatsApp and Skype for use of their networks or risk a major decline in network investment.”

With the telecommunications industry unable to monetize over-the-top (OTT) traffic, telcos will struggle to find the funding they need to improve their infrastructure — meaning that network quality could deteriorate. Chua did concede that telcos should work toward partnering with OTT players.

What It Means

SingTel’s argument runs over familiar ground, similar to the ongoing net neutrality debate in the US. My colleagues suggest that telcos will offer tiered access at tiered pricing to OTT players in the future, charging higher prices for better connection speeds and greater data traffic. While I don’t doubt this, price-sensitive Asia may be a harder nut to crack; telcos here run the risk of customer churn by raising service prices.

Aside from speeding up its rate of service innovation, SingTel should:

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An Asia Pacific First — The Forrester Wave: Asia Pacific Carrier Ethernet Services, Q4 2013

Clement Teo

Carrier Ethernet aims to provide users with a wide-area service to connect sites, in the same way that asynchronous transfer mode (ATM), Frame Relay, and X.25 services from carriers have done in the past. While end user demand for carrier Ethernet services in Asia is relatively small, it’s growing year over year and is having an impact on service providers’ bottom lines: Carrier Ethernet services currently account for 8% to 10% of service providers’ total connectivity revenues in the region.

For The Forrester Wave™: Asia Pacific Carrier Ethernet Services, Q4 2013, we identified, qualified, and evaluated seven global and regional service providers that offer unmanaged site-to-site carrier Ethernet services to multinational companies in Asia Pacific: BT, Orange Business Services, Pacnet, SingTel, Tata Communications, Telstra Global, and Verizon. Key differentiators include the services that each vendor has on offer, such as flexibility in bandwidth bursting, granularity of access speeds, operational metrics and reporting, network coverage, and service-level agreements.

What It Means

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Local Telcos Are Well-Positioned For Cloud Services In Southeast Asia

Clement Teo

At the 2nd Annual Telco Cloud Strategies 2013 event in Singapore, I moderated a discussion on how Southeast Asian telcos are gearing up to offer cloud services. Here’s what I observed:

  • In the cloud era, SE Asian telcos are moving faster than they are used to. A year ago, Philippine telco Globe Telecom set up a new division, IT Enabled Services, to effectively deliver cloud services, supported by more than 100 professional services people on the ground. While revenues are still low, the new division is now freed from being part of the larger parent company’s processes and can move quicker than competitors to offer managed cloud services for specific industries. Indonesia’s Indosat, on the other hand, has brought both the IT and network divisions together to offer a bundled service — cloud with connectivity — in the same period. Others, like Singapore’s SingTel, acquired IT services company, NCS, to tap into the enterprise segment.
  • Telcos need partners for cloud services. This is essential, as telcos do not typically have all the pieces for an end-to-end solution. For instance, even with a solid IaaS offering, a telco still needs partners to build the value chain in their ecosystem, e.g., SaaS, and grow together. Indosat, for instance, partnered with Dimension Data to offer enterprise cloud services in Indonesia. The partnership combines Indosat’s nationwide connectivity backbone infrastructure and its 10 data center facilities in Indonesia with Dimension Data’s cloud consultancy services.
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SingTel Makes Good Progress, But Questions Over IT Services Capabilities Remain

Fred Giron

Clement Teo, Dane Anderson, Frederic Giron

At an analyst briefing in Singapore on November 7, newly minted SingTel Group Enterprise CEO, Bill Chang, laid out his vision on how the group’s reorganization aims to build the foundation for SingTel to become the largest ICT services provider in Asia Pacific in an ambitious five years.

For Sourcing and Vendor Management professionals, here’s a quick summary:

  • SingTel Group Enterprise: SingTel Business Group, NCS, Enterprise Data and Managed Services (EDMS) and Optus Business (including Alphawest) are now one entity as of 1 Nov 2012.
  • Converged capabilities: This organizational transformation converges SingTel’s Telco and IT service competencies for a one-stop ICT experience, and simplifies delivery capabilities to enable large scale global deployments. In a nutshell:  SingTel is aiming to create a repeatable and more scalable product set.
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SingTel Makes Good Progress, But Questions Over IT Services Capabilities Remain

Clement Teo

At an analyst briefing in Singapore on November 7, newly minted SingTel Group Enterprise CEO, Bill Chang, laid out his vision on how the group’s reorganization aims to build the foundation for SingTel to become the largest ICT services provider in Asia Pacific in an ambitious five years.

For Sourcing and Vendor Management professionals, here’s a quick summary:

  • SingTel Group Enterprise: SingTel Business Group, NCS, Enterprise Data and Managed Services (EDMS) and Optus Business (including Alphawest) are now one entity as of 1 Nov 2012.
  • Converged capabilities: This organizational transformation converges SingTel’s Telco and IT service competencies for a one-stop ICT experience and simplifies delivery capabilities to enable large-scale global deployments. In a nutshell: SingTel is aiming to create a repeatable and more scalable product set.
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SingTel Launches PowerON Compute In Hong Kong — A Sign Of Things To Come

Michael Barnes

On July 11, 2012, SingTel launched its PowerON Compute cloud service in Hong Kong. While certainly interesting on its own, I believe this announcement is particularly noteworthy as a harbinger of things to come.

Some key points to consider:

  • As a hybrid offering, PowerON Compute is a dynamic infrastructure services solution hosted in SingTel’s data centers in Singapore, Australia, and now Hong Kong. The computing resources (e.g., CPU, memory, storage) can be accessed either via a public Internet connection or a private secured network.
  • This announcement confirms the findings of my February 2012 report, “Sizing the Cloud Markets in Asia Pacific”: that market demand for cloud-based computing resources in Asia Pacific (AP) will rapidly shift from infrastructure-as-a-service (IaaS) to dynamic infrastructure services.
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SingTel Lands Big Government Cloud Win In Singapore

Manish Bahl

On May 15, 2012, the Infocomm Development Authority (IDA) of Singapore announced that it would award its much-awaited externally hosted g-cloud infrastructure five-year tender to SingTel. My colleague Jennifer Belissent and I published a report on g-cloud opportunities in Asia Pacific late last year that highlighted Singapore as one of the governments leading the way toward g-cloud adoption in the region.

Some key highlights from the Singapore g-cloud contract:

  • SingTel will be responsible for all of the capex- and opex-related costs needed to build and manage the central infrastructure from its own data center in Singapore.
  • Singtel will provide a central “G-Cloud Service Portal” to all government organizations and departments to access central g-cloud services (computing, storage, database, archiving, networking, and other basic resources) and derive revenue based on a subscription model.
  • The Singapore government has not committed to any particular minimum g-cloud usage level.
  • SingTel will provide the required training to government departments on g-cloud functioning.
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