According to IDC's Asia/Pacific (excluding Japan) (APEJ) Telecommunications 2007 top 10 predictions, 2007 will be a period of evolution, and network and IT equipment will shift its focus from hardware to a greater emphasis on software and services.

"The telecommunications industry in APEJ is facing a period of evolution, as lines between traditional network architectures and services disappear, spurred by developments in technology and end-user usage patterns and demand. From convergence to shifting go-to-market strategies, both equipment vendors and telecoms will need to better position themselves for the coming change," says Sandra Ng, vice president, IDC's Asia/Pacific Communications, Peripherals, and Services research.

The APEJ telecom services market was worth over US$183 billion in 2006 and is projected to achieve 10% growth to exceed US$202 billion in 2007. Growth will continue to come from VoIP, Broadband, IP Services and 3G Services. In addition, the networking equipment market, estimated at over US$7.2 billion in 2006, is expected to grow to over US$8 billion in 2007.

IDC predicts that 2007 will see an increase in Layer 2 Ethernet services and expects major carriers in APEJ to start offering point-to-point metro Ethernet services. 2007 will be the year where wireless mesh services will emerge in Asia. IDC believes this will occur because of its potential for large-scale wireless deployments, strong support from governments and the availability of blueprints from visible mesh deployments.

The IDC report also mentions that many large WiMAX vendors will offer advanced antenna solutions in 2007 to achieve greater spectral efficiencies compared to alternative wireless technologies. After several years of discussion, technologies and products relating to Fixed Mobile Convergence (FMC) have progressed to the stage where initial deployments, either on a trial or commercial basis, are likely to be offered in 2007. According to IDC, this shift to FMC is going to trigger restructuring and changes in the business models as well as network infrastructure of carriers.

IDC expects IM to evolve as the next collaborative tool in mobile business communication. Prosumers or professional consumers will drive enterprises to deploy IM solutions initially and IM will progressively evolve from being a standalone product to a communication product that is well integrated with other business applications.

Application-aware networking---solutions that make intelligent routing, security, and delivery decisions regarding network traffic---is another space that will see growth in the enterprise. As most vendors have settled down after the acquisition frenzy and have formulated aggressive strategies to acquire new customers, 2007 will be a significant year for application-aware networking.

IDC expects Mobile TV to become a reality in key markets in the APEJ region.
In addition to all of the above, P2P services, originating mainly from China, threaten the growth and development of IPTV. Starting in 2007, IPTV operators in APEJ and around the world will need to closely watch the development of these services in a bid to mitigate this threat.

The report finally talks about Web 2.0, and the new challenges and opportunities it presents. IDC expects 2007 to be a year when their popularity will push service providers to develop strategies to harness the development, both within the enterprise and among consumers.