3G to reach 13.5% of Asia-Pacific by 2010, mobile penetration to reach 37%

As China enters a period of uncertainly from impending industry restructuring, the meteoric rise in India’s mobile subscribers will buoy the region’s growth at 11% CAGR over 2006-2010. Total mobile subscribers are forecast to reach 1.05 bln by 2010 for the aggregated 10 key markets of Australia, Hong Kong, India, Malaysia, Philippines, the PRC, Singapore, South Korea, Taiwan and Thailand, according to IDC. The mobile services market in APEJ enjoyed buoyant growth in 2005; with subscribers rising 19% to 628.5 mln and revenue amounting to $81.4 bln representing 18% jump over 2004. Mobile penetration is forecast to reach 37% by 2010, a big leap from 23% in 2005. The growing popularity of prepaid services across the region represents the leading factor driving mobile adoption, which continue to lower the entry barriers for nascent demand and to extend the addressable market to new segments. Supported by the launch of 3G networks in China by the time of the Beijing Summer Olympics, IDC forecasts 3G subscribers to account for 13.5% of the APEJ market by 2010.