NEW YORK-The Asia-Pacific cellular market is expected to hold 30 million subscribers by 1998, according to a new market research study from Northern Business Information.
Cellular service market analyses and forecasts for Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand are included in NBI’s report entitled, “Asia-Pacific Cellular Markets.”
The study said that 23 percent of today’s cellular subscribers worldwide come from the Asia-Pacific market and at the end of 1994 there were 10.7 million subscribers in that area.
Meera Singh, a senior analyst specializing in Asia-Pacific telecommunications at NBI, noted the market area is ready to convert to digital.
Singh also said that in countries where wireline service is not available wireless can provide a simple substitute for the short term.
The 188-page NBI report is the result of four months of research compiled from first-hand interviews with service providers.
The report also states that cellular market monopolies soon will become a thing of the past, forcing cellular market providers to concentrate on keeping customer service high, while dropping prices. NBI said overall revenues are expected to grow at an average annual rate of 28 percent but service revenues per subscriber will decline. The trend is attributed to markets adopting advanced technology and becoming increasingly competitive.
The report continues to identify the specific competitive environment of each country. For example, after India, the Filipino cellular market is experiencing the fastest growth in terms of revenue and subscribers, creating a virtual battlefield for the five license holders there: Piltel, Smart, Extelcom, Globe and Islacom.
“The high growth rate of the Asia-Pacific cellular market over the next four years will be largely attributed to countries where penetration is currently low,” said Singh. “Surprisingly, by 1998, the Asia-Pacific cellular market will still represent only a 23 percent share of the world market.
“Countries with typically low penetration rates are experiencing high growth, which is due mainly to the technology still being fairly new and demand high. Consequently, this will not be the case in the long run,” she concluded.
