Asia-Pac telcos aggressive on data revenue growth

Firms are pumping in significant amounts of funds to upgrade their network infrastructure to next generation technology, says S&P.

In the report "Asia-Pacific Telecom Companies Tussle In The Search For Data Revenue Growth," Standard & Poor's Ratings Services said these investments would enable the telecommunications companies to capture a greater share of revenue from an expected rapid increase in data usage.

"The proliferation of smartphones, tablets, and other mobile devices is propelling exponential growth of data volumes for the region's telecom operators," said Standard & Poor's credit analyst Paul Draffin. "But competitive pressures could erode the expected revenue gains. Moreover, rated telecom companies face regulatory risk and technological threats, such as mobile voice over Internet Protocol."

Meanwhile S&P believes rated Asia-Pacific telecom operators would be able to maintain their credit quality. “Their robust balance sheets, solid earnings, and leading market positions for many rated players should enable them to withstand the pressures,” explained the ratings company.