Cable & Wireless aims to double Asia income
Cable & Wireless, a British telecommunications operator, aims to double revenue from Asia this year by expanding in China and the Middle East, according to the chief executive for Europe, Asia and the United States, Jim Marsh.
The company, which is now focusing on providing international connectivity and corporate solutions to multinational firms, last month announced it was deploying an extensive telecommunications network across the Middle East to serve its enterprise customers based in or planning to move to the region.
This includes a presence in Dubai, Abu Dhabi and Bahrain that will link customers in the United Arab Emirates to the network.
Cable & Wireless has secured a three-year, US$20 million a year contract with a technology service firm to provide the backbone connectivity.
The services will also enable customers to route increased levels of data traffic in Europe, the Middle East and Asia, where internet usage is expected to grow substantially.
The group was recently awarded international long distance and national long distance licences by the Indian government to set up and manage its own operations in India. Cable & Wireless partnered Telecom Italia Sparkle to deliver network access to the Mediterranean Basin and enable the Italian partner to improve its network capability in Asia.
Technology and telecommunications spending in the region remains robust and is expected to grow at an even rate. Asia-Pacific is the most important region for Cable & Wireless.
Ovum, an industry research firm, expected revenue for MPLS services in the Middle East and Africa to double over the next five years to US$1.04 billion in 2012.
Another research firm, IDC, says information technology spending in Asia-Pacific is growing fast, with the mainland spending US$12.8 billion on services such as voice, broadband and data last year, while Japan ranked second with US$9.5 billion.
'Asia-Pacific continues to show significant momentum as growth markets such as China and India advance, and emerging markets show greater acceleration,' said Mr Marsh, adding that the company will follow its customers once they have a business presence in the region.
'Our customers continue to expand across the region and look for our help to support their business growth,' he said.