Growth of prepaid segment dominate mobile services market
IDC’s preliminary results show that the total revenue of the mobile
services market in emerging Asian countries (Bangladesh, Pakistan Sri
Lanka and Vietnam) reached US$3.1 billion and registered a 72.9% annual
growth rate in 2006.
In all four emerging markets, the total number of mobile subscribers
grew an astounding 118.5 per cent growth to 89.3 million, over the
previous year.
The robust appetite for mobile services drove the market in these
countries, particularly Pakistan and Bangladesh, two of the world’s most
populous countries.
Prepaid vs Postpaid Subscribers Forecast 2007-2011 In 2006, voice
revenue increased 66.4 per cent year-on-year while non-voice revenue
grew 103.6 per cent and accounted for 20.5per cent of the total mobile
service revenue, indicating a big jump
from 2005.
The mobile penetration is still very low in these countries at below
30 per cent. Growth in the prepaid segment, which dominates the market
at 95 per cent of the total subscriber base, continued to be more
aggressive than that of the contract segment. Prepaid subscribers in all
four countries surged by 124.8 per cent in 2006, while contract
subscribers grew more fairly at 42.6 per cent.
Mass-market users prefer the prepaid service as a means of
controlling their budget and not exceeding their expenditure on mobile
services. All operators provide prepaid packages, with some operators
coming up with several packages to best suit different subscriber
preferences.
“Given the relatively lower spending capabilities in the emerging
countries, prepaid and pay-per-use models, which require a smaller
immediate payment from subscribers, is proving successful.” says Kam
Kasturie, Senior Analyst for IDC’s Malaysia Telecommunications Res-
earch.
IDC forecasts a strong compound annual growth rate (CAGR) of 25.9 per
cent for the total revenue of the mobile services market in all four
countries over the next five years. Moving forward, non-voice service
revenue will keep on rising due to the staggering growth of subscribers
in these markets.
IDC’s forecast for the region’s subscriber base is likewise
optimistic with a CAGR of 28 per cent from 2007-2012, with mobile users
continuing to prefer prepaid subscription. Country Highlights
Teledensity in Bangladesh started to increase with the introduction
of mobile phones a few years ago. The mobile penetration rose from 7.2
per cent in 2005 to 14.4 per cent in 2006. The mobile subscriber growth
was double at 103.5 per cent in 2006, primarily from the prepaid
segment.
The number of mobile subscribers in Pakistan grew 145.9 per cent in
2006. Since the cabinet’s approval of the de-regulation policy for its
telecommunication sector in 2004, the country’s mobile market has become
one of the fastest growing in the region.
Sri Lanka became the first country in South Asia to introduce 3G when
it launched W-CDMA technology in August 2006. The launch of high-speed
mobile data transmission possible through 3G is expected to add more
value and momentum to the non-voice segment and to the country’s mobile
sector.
Non-voice service revenue in Vietnam jumped at 134.0 per cent
year-on-year to 55.7 per centof total market revenue, while voice grew
80.5 per cent in 2006.
With SMS being the cheapest form of communication, usage is
relatively high, and this trend will likely continue due to the lower
income levels in the country. |