Reduced calling rates, handset prices and the expansion of the network infrastructure in India and Indonesia are driving growth in the Asia-Pacific mobile market, according to Frost & Sullivan.



The Asia-Pacific mobile subscriber base is estimated to reach 1.14 billion by the end of 2007, up from 0.95 billion in 2006. The market grew at a compound annual growth rate (CAGR) of 24% between 2002 and 2006.

India passed Japan as the second-largest mobile services market in the region in terms of subscribers in June 2006. China has the most subscribers in the Asia-Pacific market.

India still has vast room for growth, with 142.7 million subscribers in 2006 and a mobile penetration rate of only 13%.

"The impact of the emerging markets on the rest of the region is likely to grow in significance as regional carriers search for sustainable growth, and as economies of scale further drive down 3G handset prices," noted Janice Chong of Frost. "Of the expected 190 million net subscriber additions in 2007, 90.8% are likely to stem from the emerging markets."