APAC Demand For Mobile Data Services Increases As Mobile Voice Declines

According to Ovum, APAC’s mobile phone market will see a continued decline in voice revenues over the next five years, as intense competition continues to push prices lower.

According to new figures released by the independent telecoms analyst, Mobile regional and country forecast pack 2010-15, revenues generated in the APAC through voice services will fall from USD 182 billion in 2010 to USD 176 billion in 2015. The trend is driven by falling ARPU in competitive markets, outweighing overall growth in connections and minutes of use.

However, the picture at the country level is patchy. India, China and Indonesia, being the growth engines of the region for new connections, show continued growth in mobile voice revenues despite falling ARPU. But in developed markets like Australia, Hong Kong, Japan and Korea, where connection markets are saturating, we foresee rapid mobile voice revenue declines.

More from Biztech

Future Group - Reliance Retail Deal approved by CCI RBI ban on cryptocurrencies takes effect; prohibition could force investors to tap the black market

At the same time, there will be a healthy growth in revenues generated from mobile data services, with an increase from USD 84 billion in 2010 to USD 133 billion in 2015. We foresee both rising data connections and data rising ARPU as more consumers in APAC opt to use more text, email, social media and video on their mobiles.

Overall, we expect total APAC mobile revenues to increase only from USD 267 billion in 2010 to USD 310 billion in 2015. However, Ovum sees total connections increasing from 2.6 billion to 3.8 billion over the same period.

“Data is now a key driver of the mobile market and revenues will continue to grow steadily”. By 2015 there will be a much narrower gap between the revenues from voice and data and if data continues to grow at the same rate, it will eventually go into the lead," said David Kennedy, AP Research Director, Ovum.

“It is a reflection on the way the market is moving; voice services have become commoditised, while demand for access to the internet on the move has grown rapidly,” said Kennedy.