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Mobile data services are the next wave of growth for the mobile
communications industry amid the increasingly saturated subscriber base. While
messaging will continue to be the main revenue contributor in most emerging and
developing mobile data markets, much of the growth potential also lies in
premium content. Greater 3G (third generation) Compaq Presario 1134
Desktopoverage and deployment, expanding regional subscriber base, declining
cost of advanced multimedia handsets, and the race to secure a continuous stream
of content through partnerships are likely to drive growth of mobile data
revenues.
New analysis from global growth consulting company, Frost & Sullivan Asia
Pacific Premium Content Market, revealed that the market-covering 13 major
Asia-Pac economies-earned revenues of $9.4 billion in 2005 and is estimated to
reach $32.9 billion by end-2011.
“Subscribers in most Asia-Pac countries have strong preference for local
content, which creates the impetus for the fast-growing mobile content market.
The pace of 3G adoption, to a certain extent, influences the development of
premium content applications by providing greater bandwidth and faster data
transmission,” said Janice Chong, Industry Manager, Frost & Sullivan.
The Asia Pacific mobile data market is forecasted to grow at a CAGR (compound
annual growth rate) of 17.9 percent between 2005 and 2011. Messaging revenues
still constitute the majority of operator-generated data revenues. In 2005,
messaging accounted for approximately 39.6 percent of total operators' data
revenues (excluding revenue share of third-party content providers). The total
premium content market, which includes both operator and third-party content
provider revenues, held 29.5 percent of total mobile data revenues in 2005, and
is expected to register a CAGR of 23.2 percent from 2005 to 2011.
In certain Asia Pacific countries, the revenue share ratio skews in favor of
mobile operators. As a result, content providers receive a small revenue split.
Moreover, content providers are required to pay hefty royalties for applications
to music label companies and associations. While the revenue share model
employed in Japan, South Korea and China may seem relatively favorable to
content providers, similar business models may not apply to other countries
across the region.
The lack of a satisfactory level of revenue from data traffic usage would
mean that operators will tend to seek a higher revenue share from content
downloads to compensate for the low data traffic revenue.
DQW News Bureau Page(s) 1
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