Asia could be world's largest mobile market within a decade

September 22, 2005

Asia may become the largest regional mobile telecommunications market in the world over the next five to ten years, reports In-Stat. In 2004, there were nearly 740 million mobile users in Asia (including Japan, Australia, and New Zealand) with total revenue of roughly US$180 billion, the high-tech market research firm says. By 2009, Asian mobile telecom revenues will reach over US$260 billion, according to In-Stat's forecast. India will be the fastest growing entity in this region, with a 32.8% compound annual growth rate (CAGR) in terms of subscribers, and 31.1% by revenue, for the period from 2004 to 2009.

In-Stat sees Asia as the most exciting market for investors, operators, equipment vendors, and handset manufacturers. Operators like NTT DoCoMo and Singapore Telecom are seeking investment opportunities to expand outside their home markets.

A recent report by In-Stat found the following:

- South Korean handset vendors like Samsung and LG are significantly gaining market share in both high-end products and in developing markets.

- In the equipment area, Sony Ericsson is still winning within the region, with its advanced technologies and R&D facilities, extensive infrastructure, great product quality, and successful marketing strategies.

- US equipment vendors like Motorola and Lucent have made significant headway in the Asian market because of their large new deployments of CDMA technology.

This Market Alert is drawn from the In-Stat report, "Asia Wireless Annual Report: Subscribers, Handsets, and Infrastructure", which covers wireless services, handset, and equipment markets in 13 countries that make up the Asian market. It includes forecasts for subscribers regionally and by country, as well as revenue forecasts by service, ARPU forecasts, and wireless equipment spending through 2009. Also included are handset vendor market shares, by country for 2004.