INTERNATIONAL INFRASTRUCTURE DEVELOPMENTS IN
ASIA 13
By Paul Budde Demand for telecommunications services has been slowing in Asia. After avoiding the worst of the global downturn in the telecom sector, Asia is finally feeling its impact on expansion plans. Infrastructure projects have started being reviewed and deferred. Consequently, equipment orders have begun to shrink. I see these actions as a temporary redirection of effort. BuddeComm estimates that US$1 trillion still needs to be invested in new infrastructure in the region over the next decade to meet the predicted demand for telecommunications services. networks. By late 2001, the projected demand for telecommunications services in Asia was indicating a slowdown. After four years of robust activity, the global downturn had finally impacted on expansion plans. Infrastructure projects started being reviewed and deferred, and equipment orders began to shrink. Once there is a level of recovery in the global economy, attention will once again be devoted to the investment strategies for the Asian telecom market, as it remains the largest growth market in the world. Regional governments in Asia have recognised for some time that they needed to encourage private sector investment to help meet