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Mobile market in Asia continues to exhibit strong growth
added: 2007-03-12

At a time when most regional cellular markets are fast approaching saturation, the Asia Pacific market continues to exhibit strong growth. Fuelling this robust growth are China, India, and Indonesia, which collectively contributed to about 87.3 percent of the net subscriber additions in 2005.

Cellular subscribership in the Asia Pacific region is expected to continue achieving double-digit growth in the next three years, despite constant price wars and short product life cycles. Much of this growth is likely to be powered by nascent markets such as in India as well as Indonesia and the region overall cellular subscriber base is envisaged to touch 0.83 billion by the end of 2006. Further, taking into account Japan 0.10 billion mobile subscribers, the collective customer base are expected to near one billion by the end of the year.

Wireless Interoperability for Microwave Access (WiMAX) Technology Seeing Rapid Progress

WiMAX is witnessing rapid development in Asia Pacific and an increase in its deployment seems inevitable considering the ongoing trials as well as the WiMAX/WiBro harmonization activities and the inclusion of mobility into the IEEE Standards. Wireless broadband is fast taking shape even in markets such as Singapore, Hong Kong, and South Korea that have high broadband penetration. Elsewhere, equipment vendors have been conducting trials in the Philippines, Malaysia, Thailand, China, as well as Australia and the pace of evolution is expected to be much faster in developed markets given the advancement in technology and the move toward convergence. Nevertheless, despite this drive toward WiMAX, its large-scale implementation is likely to result only in the next two-three years.

With regard to 3G, the strategic positioning of 3G services in the Asia Pacific, outside of South Korea, has largely been centered on lowering cost barriers in order to accelerate the migration to 3G. Aggressive handset subsidies have been a focal point of service providers in South Korea, Australia, Hong Kong, and Taiwan and as prices of handsets fall and compelling mobile applications emerge, the adoption rate is expected to accelerate in the medium term, notes the analyst of this research service. Frost & Sullivan expects Asia Pacific's 3G subscriber base to expand by 15.9 percent to 45.5 million in 2006.

Mobile Data Holds Enormous Potential

With call charges typically accounting for more than three quarters of the total regional mobile revenues, Asia Pacific cellular industry is highly voice centric. However, in view of the declining growth in voice revenues and stiff competition from alternative voice applications, mobile data is seen as the next wave of growth for mobile operators. In keeping with these trends, mobile data revenues in the region are expected to grow from an estimated $13.93 billion in 2005 to approximately $18.70 billion by end of 2006.

With the proliferation of fixed-mobile substitution, declining call rates, and the emergence of WiMAX, mobile communication is fast shaping the Asia Pacific telecommunications industry says the analyst. Although the growing popularity of prepaid services has been the predominant driver of subscriber growth in the region, the role of the low-end market is expected to be more pronounced in the coming years.


Source: Business Wire

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