IDC: Mobile Broadband Increasingly Important Across Asia

IDC Mobile Broadband Increasingly Important Across AsiaAccording to a new report from IDC, mobile services market in Asia/Pacific excluding Japan (APeJ) region is considered as a very dynamic market compared to other regions, from emerging to mature market.

Many mobile operators have been struggling for quite some times to maintain growth in revenue, especially on voice services revenue.

“From 2012 to 2017, International Data Corporation (IDC) projects that the growth rate for voice services revenue in APeJ will slow down and achieve a compound annual growth rate (CAGR) of 2.5%,” IDC reveals. “However, data connectivity or mobile broadband revenue will grow at a CAGR of 19.3% from 2012 to 2017.”

IDC attributes the growth of data revenue in APeJ to three key areas: smartphones penetration with affordable prices; rollout of 3G and LTE licenses; and mobile user behavior towards ‘Over-The-Top-Players’ (OTTP) services.

“Growth pace for data connectivity in 2014 will continue to be strong and we expect the market to reach $141.2 billion by 2017. LTE subs will hold the highest five-year CAGR of 44.3% compared to other mobile technology, and Singapore will lead the growth in the region and achieve a CAGR of 103% in 2017. With this trend, mobile broadband has already become an imperative strategy for operators, considering the high investments and to offset revenue losses from OTTPs,” says Ashadi Cahyadi, Senior Research Manager at IDC Asia/Pacific Telecommunication Group.

According to IDC Asia/Pacific Semiannual Telecom Services Tracker 1H2013, the total mobile services market revenue in APeJ will reach $271.4 billion by 2014.

Not surprisingly, Asia’s most populated countries like China and India will continue to make up the largest shares in the market. Emerging countries, however, (Indonesia, Thailand, Philippines) are the top three countries leading the revenue growth in 2014.