Singapore
Asia-Pacific's 3G (third generation) market which has largely remained nascent up till 2005 is expected to exhibit strong growth on the heels of more advanced 3G markets such as South Korea, Hong Kong, Taiwan and Australia. The large developing markets of China and India are expected to contribute significantly to the robust growth of the region's 3G subscriber base after 2008.
The price of 3G end-points and uptake of mobile content however remain less encouraging. This, coupled with the fact that most markets in Asia-Pacific are generally price-conscious, may pose as the biggest challenge towards mass-scale adoption of 3G services in the near term.
New analysis from global growth consulting company, Frost & Sullivan (www.wireless.frost.com), 3G Brewing in Asia Pacific, reveals that the 3G subscriber base - covering 12 major Asia-Pacific countries ex-Japan - totaled 15.6 million in 2005, representing a mere 2.3 percent of the total mobile subscribers.
"The 3G revolution is inevitable as urban consumers who are the first adopters of mobile services demand faster speed and greater functionalities on their mobile handsets," says Frost & Sullivan research analyst Lenny Koay. "Operators' bid to drive uptake and realize ROI (return on investments) from costly infrastructure deployments will also fuel the 3G phenomenon."
The 3G subscriber base in Asia-Pacific is forecasted to grow at CAGR (compound annual growth rate) of 50.1 percent (2005 - 2011) to reach 178 million subscribers by end-2011. "China and India, given their huge populations and economies of scale advantage will account for much of this growth," adds Koay. Both countries are expected to introduce 3G services in 2007.
Subscribers of 2G technologies, GSM (global system for mobile communications) and CDMA (code division multiple access), which formed 91.8 percent of total cellular subscribers in 2005 are likely to grow at a more subdued CAGR of 12.3 percent from 2005 to 2011.
"In 2005, mobile data accounted for only 16.4 percent of the total Asia-Pacific cellular revenues," explains Koay. "In markets such as Hong Kong, India, Taiwan and Thailand, the voice segment still reigns, where it commands more than 90 percent of the overall cellular revenues."
Mobile operators need to increase subscribers' data usage to make 3G more relevant to users in Asia-Pacific countries. Creating a pool of data-hungry subscribers will be the operators' first major obstacle; which, if executed successfully, will secure a foothold for 3G standards amidst other competing technologies.
The 3G Brewing in Asia Pacific study, part of the Mobile and Wireless Growth Partnership Services, explores the different 3G technologies adopted across various countries in Asia-Pacific. The study also includes an outlook of 3G subscribers in comparison to overall cellular subscribers; a list of the competitiveness of 3G products, handsets and pricing; 3G regulatory framework by country; and overall cellular revenues in Asia-Pacific, as well as in each country. Analyst interviews are available to the press.
If you are interested in a virtual brochure, which provides service providers, vendors/manufacturers, end users, and other industry participants with an overview of the 3G mobile technology markets in Asia Pacific, then send an e-mail to Letticia Leopold, Corporate Communications, at letticia.leopold@frost.com with your full name, company name, title, telephone number, fax number, city, state, country and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com
CONTACT:
Sarah Lourdes
Corporate Communications-Asia Pacific
+603.6207.1030
sarah.lourdes@frost.com
Letticia Leopold, Corporate Communications - Asia Pacific, Frost & Sullivan, +603.6207.1031 letticia.leopold@frost.com
Mireya Castilla, Corporate Communications - North America, Frost & Sullivan, +1.210.247.3830 mireya.castilla@frost.com
Source: Frost & Sullivan (Business Wire India)