South Korea to drive 3G uptake in Asia ex-Japan

January 17, 2005

Japan is at the forefront of mobile phone technology in Asia while other countries in the region have lacked behind. But according to International Data Corporation (IDC), a research group, demand for 3G mobile services in Asia out side of Japan will grow by half this year to 17 million users, reported Reuters.

South Korea will be the main country driving the growth of 3G uptake in Asia. It is the only country apart from Japan to have all its 3G licensees launch the service.

The wider availability of 3G phones will support the increase in subscribers but success will depend on the services launched by operators and the discounts they offer.

"Most operators have or will launch commercial 3G services in the next few months, and uptake will depend on how aggressive they are in terms of promotions, handset prices, and coverage issues," said IDC analyst Sandra Ng.

Some operators in the region have officially launched 3G services but provide only a limited coverage, resulting in drop calls. Ng said that if 3G services have few issues then it would definitely drive uptake.

IDC estimates Asia Pacific ex-Japan mobile revenues will rise by an average 16% in 2005 to US$81.2 billion, driven by India, South Korea and the Philippines.

Mobile revenues are expected to rise 64% in India, 27% in South Korea and 25% in the Philippines.

"In Korea, growth is more data-driven -- revenue is coming from data, multimedia (picture or photo) messaging and other forms of mobile content, while in the Philippines, operators are tapping the low-income market with creative services," Ng said.