Telco enterprise business performed well in 1Q2021

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Summary

Enterprise business emerged as a bright spot for Asia Pacific telecom operators in the first quarter of 2021, as service providers doubled down on cloud, cybersecurity, and IoT offerings to diversify beyond core connectivity revenue. Enterprise segments across 25 operators in the region reveal distinct performance, scale, and growth drivers.

Enterprise revenue contribution varies widely across operators, and several players are expanding their enterprise portfolios through partnerships with global technology companies spanning cloud infrastructure, consulting, and managed services. Specific collaborations telcos are pursuing range from open-source cloud support and remote HR solutions for small and medium enterprises to 5G-enabled edge computing partnerships supporting robotics, drones, and machine learning use cases.

Some large incumbent operators are also seeing their enterprise businesses shrink even as others accelerate, pointing to factors like domestic market saturation, deliberate portfolio rationalisation, and pandemic-related disruption to deal cycles. Together, these threads paint a picture of enterprise connectivity and digital services as telecom's most consistent growth engine heading into the second half of 2021.

  • Cloud, cybersecurity, and IoT partnerships with global hyperscalers and consulting firms
  • 5G-enabled multi-access edge compute deployments for enterprise customers
As core connectivity growth slows, how much of a telco's future actually depends on winning the enterprise digital transformation opportunity?

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