Asia-Pac
Announcement posted by Frost & Sullivan 27 Nov 2006
Asia-Pacific’s 3G 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 Australia, Hong Kong, South Korea and Taiwan. The large developing markets of and 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 per cent 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 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 per cent (2005 - 2011) to reach 178 million subscribers by end-2011. “ and , 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 per cent 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 per cent of the total Asia-Pacific cellular revenues,” explains Koay. “In markets such as
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 Sharmin Jassal, Corporate Communications, at sharmin.jassal@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.
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