Chinese and Japanese Multinationals to Spend $3 Billion More per Year on International Data Networking, Says BRC Consultan

LONDON--(BUSINESS WIRE)-- Shifting economic patterns, emphasising Asia and emerging markets, present substantial growth opportunities for international network service providers according to BRC Consultancy Ltd.

For its latest Global Network Outlook report BRC modelled the drivers behind multinational company expenditures on international data networking. By combining these with reputable macro-economic forecasts and multinational company data, BRC quantified the current and future market for international networking, split both ways – by each country where multinationals operate and each country where their headquarters are located.

Among the conclusions is that multinationals based in Japan are set to spend an additional $2 billion annually on international network services by 2014, up 15% from current levels. Fastest growth, perhaps unsurprisingly, is set to come from Chinese multinationals, which are expected to triple expenditures as they connect to more foreign locations.

This expected growth clearly helps NTT, which has recently expanded its international network and could attract much of this revenue. China Telecom is also well placed to benefit.

Growth among Asian multinationals may seem to offer easy pickings for Asian carriers. However service providers with global infrastructures (such as AT&T, BT Global Services, Orange Business Services and Verizon Business) could also exploit the new revenue opportunities, provided their sales propositions work in the right markets.

Suppressed growth in some markets means service providers need to plan carefully to maximise revenues, by understanding where pockets of growth are greatest – in Asia and elsewhere. They also need to understand the offsetting factors at work. These cause growth in international network expenditure to lag trade growth by 50% in many countries and sometimes exceed it by 100% elsewhere. Also consolidation leads to fewer multinationals than expected in larger countries.

Notes to Editors:

BRC Consultancy Ltd, established in 1991, is Britain’s leading independent consultancy specialising in enterprise markets for network and network-related services. Its clients are located worldwide. BRC has a range of regularly-updated market reports and consultancy services for service providers and buyers. The Global Network Outlook report mentioned above provides a granular quantification of the multinational company market for international data network services, enabling targeting of multinationals in any country by size and geographic footprint, forward projections of global markets, and bottom-up sizing and forecasting based on actual customer data.

CONTACT:

BRC Consultancy
David McCron
+44 (0)20 7887 6066
enquiries@brc.co.uk
www.brcconsultancy.com

KEYWORDS:   United Kingdom  Europe  Asia Pacific

INDUSTRY KEYWORDS:   Technology  Networks  Telecommunications  Professional Services  Consulting

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