The provision of network infrastructure and voice communication systems is technically specialized with few major players able to meet the specific needs of customers.
Our Directors believe that in the area of supplying, installing and implementing the various network infrastructure and voice communication systems, our industry prospects are positive due to several reasons:
- The telecommunications industry is vital to a country’s economy, and the upgrading of voice systems and network infrastructure is constantly being undertaken. With newer modern telecommunication solutions and infrastructure, telecommunication service providers would have to constantly provide for capital expenditure to keep up with technology, creating a demand for our products and services.
- The telecommunications industry is consumer-driven with newer handheld communication devices being introduced to the market regularly. These newer models of communication devices are also loaded with wireless internet, video-camera, mobile applications and 4G/5G-based features, whose support would require corresponding hardware and network upgrading by the telecommunication service providers.
- Fixed-line penetration in Asia is increasing as many developing countries are improving their telecommunication infrastructure to provide for better voice and data coverage. Our Directors believe that this trend is expected to continue as countries become more industrialized.
- Mobile penetration in Asia is also increasing as more people are using handphones. Along with this trend, relatively newer telecommunications service providers have emerged in competition to the incumbent operators in the region, presenting opportunities for our business.
The abovementioned growth in the telecommunications industry will correspondingly allow us to expand our maintenance and support services contracts, and our project management contracts for network infrastructure.