Asian Mobile Growth Dominated by Developing Countries

Developing countries, like India, China, Bangladesh and Indonesia, will generate more than 60% of the mobile service revenues in the Asia Pacific region in 2014, according to Strategy Analytics' Emerging Markets Communications Strategies (EMCS) service. Service revenues will grow at almost 7% annually in emerging Asian markets, while remaining essentially flat in the developed countries of that region.

"The developed countries, such as Japan and South Korea, will continue to make news with innovative services and devices," notes Tom Elliott, Director of EMCS at Strategy Analytics, "but the real growth in subscriptions and revenues is going to come from millions of new users signing up for basic services in countries like India, China and Pakistan."

Many of these new users will come from rural areas and small towns. With major cities approaching saturation, mobile operators in countries like Cambodia, where 80% of the population is rural, have little choice but to look to the countryside for growth. Phil Kendall, Director of the Wireless Networks Strategies service (WNS) points out. "It can be costly to build out networks and provide support outside of the cities, but that is where the new customers are. Operators will have to develop ways to serve these markets profitably."

Posted to the site on 1st July 2009