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Mobile is primary driver in Malaysia's digital aspirations: Cisco Index

AvantiKumar | July 10, 2014
Cisco's Visual Networking Index predicts that annual internet traffic will grow more than 20% reaching 1.6 Zettabytes by 2018, said Cisco Malaysia's Albert Chai.

Albert Chai - Cisco Malaysia modified 

Photo - Albert Chai, Country Manager, Cisco in Malaysia.

 

Mobile will drive Malaysia's digital economy ambitions and be part of a global annual internet traffic growth of more than 20 percent reaching 1.6 Zettabytes by 2018, according to  networking solutions provider Cisco's Visual Networking Index.

During the release of the Cisco Visual Networking Index Global Forecast and Service Adoption for 2013 to 2018, Cisco Malaysia country manager, Albert Chai, said, "The Asia-Pacific (APAC) region will be at the forefront in transforming the way data is consumed. By 2018, APAC will be generating the most IP traffic with 47.6 exabytes per month (36 percent of the global IP traffic) and mobile Internet traffic will continue to surpass Internet traffic from personal computers."

"The impact of this transition towards greater mobile connectivity is also being felt in Malaysia as smart devices become more pervasive in the lives of consumers," said Chai.  "Figures from Malaysian Internet Exchange (MyIX) show that in 2013, Internet traffic in Malaysia increased by an incredible 51 per cent to a total amount of 349,277 Mbps, a surge that is mostly attributed to an increase in the number of users accessing the Internet from their smart devices."

"As Malaysia inches further towards its digital economy aspirations, no doubt mobile connectivity will become the primary driver of this ambition, allowing businesses to reach out to and connect with their customers and clients from anywhere, anytime and through any device," said Chai.

Doug Webster, vice president of Products and Solutions Marketing, Cisco, added: "Our first Cisco Visual Networking Index nine years ago established the zettabyte as a major milestone for global IP traffic. Today, we are firmly in the 'Zettabyte Era' [A zettabyte is equal to 1,000 exabytes and precedes the yottabyte unit of measurement.] and witnessing incredible innovations and shifts in the industry. The reality of the Internet of Everything (IoE), the increasing demand for network mobility, and the emergence of 4K video are among the key trends highlighted in this year's forecast that represent significant opportunities for service providers today and in the immediate future."

Webster said the study predicted that global Internet Protocol (IP) traffic will increase nearly three-fold over the next five years due to more Internet users and devices, faster broadband speeds and more video viewing. Global IP traffic for fixed and mobile connections is expected to reach an annual run rate of 1.6 zettabytes - more than one and a half trillion gigabytes per year by 2018. The projected annual IP traffic for 2018 will be greater than all IP traffic that has been generated globally from 1984 - 2013 (1.3 zettabytes).

 Opportunities at warp speed

"This poses incredible opportunities for the Malaysian e-commerce sector for example, which is expected to grow at an accelerated pace from RM842 million

[US$265 million] in 2011 to reach RM1.72 billion [US$540 million] by 2017," said Chai. "Efforts such as enabling e-payment for SMEs and Microenterprise and the development a trusted mobile digital wallet system, both under the Digital Malaysia initiative, will certainly enhance the ecosystem further and enable Malaysian businesses to expand their reach across physical and virtual platforms and better engage their partners and customers across borders."

"At Cisco, we are excited about these opportunities that are materialising at warp speed in Malaysia and we look forward to working with our Malaysian customers and partners in integrating mobility, video, and cloud into not only their operations but also their customer service portfolios," he said. "No doubt this will enable them to take advantage of the possibilities and opportunities presented in the era of the Internet of Everything and Cisco Malaysia is proud to be a part of this revolution."

The study also indicated that the composition of IP traffic will shift dramatically in the coming few years. During the forecast period, the majority of traffic will originate from devices other than personal computers (PCs) for the first time in the history of the Internet.

Chai said trend has been evidenced in Malaysia by national regulator Malaysia Communications and Multimedia Commission [MCMC], which indicated that as early as 2012, 61.2 percent of the population have access to non-PC devices.

Wi-Fi traffic will also exceed wired traffic for the first time. In Malaysia, this trend is beginning to take shape as household wireless broadband subscriptions reach 2.4 million users surpassing wired broadband subscriptions of 2.4 million users in 2013. As the population gets better connected, consumers in Malaysia will demand more high quality video for consumption. It is predicted that high-definition (HD) video will generate more traffic than standard definition (SD) video.

 Other findings include:

The Internet of Everything is gaining momentum and by 2018 there will be nearly as many machine-to-machine (M2M) connections as there are people on earth. Smart cars will have nearly four M2M modules per car.

Global IP traffic is expected to reach 132 exabytes per month by 2018, which is the equivalent to:

  • 8.8 billion screens streaming the FIFA World Cup final game in Ultra-HD/4K at the same time;
  • 5.5 billion people binge-watching "Game of Thrones" Season 4 via video-on-demand in HD or 1.5 billion watching in Ultra-HD/4K;
  • 4.5 trillion YouTube clips; and
  • 940 quadrillion text messages.

 

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