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Merging trend in APAC set to continue in 2016

7/01/2016 by


The value of mergers and acquisitions in the telecoms sector in the Asia-Pacific region totalled US$129.8 billion in 2015, according to a new Thomson Reuters report.

That means the value of deals rose by more than 100% in the sector in the space of 12 months, with analysts predicting a similar story in 2016, the South China Morning Post reports.

EY Transaction Advisory Services' greater China leader Bob Partridge made an early prediction that the volume of deals will grow by about 15% to 20% in 2016 across all sectors.

Taking China as an example, he said: "Growth rates have slowed but they're still attracting positive growth [...] we're also very bullish on infrastructure spending as growth slows and the government is investing in infrastructure as a way to keep the economy growing," he said.

Partridge added that his firm's "pipeline for the last few months continues to be very strong going into the New Year", suggesting last year's record figure of US$1 trillion will be topped.

"Some of my staff would say the leading indicator would be the number of holidays cancelled around the Christmas period," he continued.

The New Year has led to further predictions for APAC's telecoms sector, with Analysys Mason – a global analysis and advisory firm for the industry – forecasting that competition among over-the-top (OTT) players will intensify in some markets, and telcos will be more involved as enablers and platform providers.

Other notable predictions made by the firm include the emergence of Voice over LTE due to increased LTE deployment, and growing data consumption to lead telcos in emerging Asia-Pacific to shift from cellular fixed wireless access (FWA) to fibre to the x (FTTx).


APAC, Telecoms & Internet

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