NEW DELHI, India-The Southeast Asian region is set to enter a new era of wireless data within the next two years. Many operators in the region have already introduced wireless data services, including Wireless Application Protocol (WAP) launches, in preparation for a full-scale transition to third-generation (3G) services.
Analysts predict cell phones-not PCs-will be the primary device for Internet access for most new surfers in these countries. They expect an explosion similar to Japan’s i-mode popularity in some Southeast Asian areas.
The need for greater access to wireless data is prevalent throughout Southeast Asia, as mobile-phone penetration in the region is much higher than PC penetration. The only factor that could hinder growth of wireless data is the availability of necessary financial resources. Most operators have just recovered from the economic crisis of the late 1990s and are now looking to expand their operations. A wave of consolidation and regulatory changes is also being witnessed in some markets.
“Across Asia, mobile phones have a far higher penetration rate than PCs; they also bypass the poor fixed-line infrastructure that now hinders Internet use. As the Internet and e-commerce are just beginning to take off in Asia, many wireless providers will include data services in their basic offerings from the outset. Also, Asian consumers are showing tremendous demand for access to the wireless Web. All these factors point to a huge potential market for wireless data in Asia-an expected 52 million subscribers by 2003,” observed global consulting firm McKinsey & Co. in a recent study.
The Philippines, for example, already has one of the largest short message service (SMS) markets in Asia, suggesting an easy and rapid shift to more sophisticated data services. Philippino GSM users are among the world’s heaviest text users, sending up to 10 times as many text messages as voice calls.
“Because of this, we are confident that GPRS technology will quickly become a must-have for our subscribers,” said Napoleon L. Nazareno, president and chief executive officer (CEO) of Smart Communications, the country’s largest mobile operator. “As soon as handsets are available, we will be encouraging our subscribers to try the new network.”
Smart was the first operator in the country to test General Packet Radio Service (GPRS) technology, using a Nokia system in July. Smart already offers trial mobile banking services and WAPTrade, which allows subscribers to conduct transactions on the Philippine Stock Exchange.
Despite the recent tariff deregulation, Malaysian operators are upbeat about the growth of wireless data. In August, Celcom signed agreements with Ericsson, Lucent and Siemens to participate in its GPRS trial beginning in October. Celcom-the first of the country’s five cellular operators to announce GPRS trials-expects to introduce the service by early next year. Time dotCom has also set December as its target for GPRS rollout. DiGi Telecommunications is investing 1 billion ringgit (US$263 million) during the next two years to upgrade and expand its network.
“We will continue to focus on product innovation and lifestyle services by rolling out our high value-added services like mobile banking and mobile commerce, WAP and GPRS,” said Stein Hansen, DiGi CEO.
“The main issues the industry faces will be the introduction of 3G and GPRS; the need for more network capacity and infrastructure to cater for higher-bandwidth requirements; and the need for competitive products and services in line with global trends,” observed Halim Saad, managing director of Time dotCom.
But independent experts do not fully share the optimism of Malaysia’s cellular players. In a recent commentary, Lai Tak Heong, head of SG Research, a financial market research firm based in Kuala Lumpur, noted: “There are too many players in Malaysia. It is difficult for them to earn sufficient economic returns on today’s assets, let alone justify investments in new technologies like 3G. Consolidation has not taken place. The hope is that the government will use the 3G licenses as an opportunity to consolidate the industry instead of giving them to new players.”
In Thailand, the two leading providers-Advanced Info Service (AIS) and Total Access Communications (TAC)-plan to launch WAP services later this year. They will both improve their networks to eventually provide GPRS, as well as a full range of 3G services. AIS said it will spend US$40 million this year on a WAP gateway and related services, although it has not decided on the gateway vendor. Siemens, Ericsson and Nokia have been short listed.
“AIS intends to work with content providers/merchants to develop appropriate applications so that they fit the customers in time, place and interest and also with different mobile devices like phones and Palms,” said Somprasong Boonyachai, president and chief executive of AIS.
“Generally, Thais are very receptive to new technologies and services. Consumers, whether they are in Thailand or in other countries, share similar inherent needs and desires, which drive our vision of the wireless Internet,” said Vuntanadit Suphakit, Motorola marketing executive.
Motorola has announced agreements with e-Thailand.com and wapofthailand.com to provide services ranging from stock quotes to lottery results to WAP-phone users. Wapofthailand.com allows WAP-phone users to select from an extensive list of WAP-enabled Web sites, such as entertainment, business, news, retail and travel information.
The government-run operator, the Communications Authority of Thailand (CAT), is also in the race. “We are planning an extension network for CDMA and a leap to 3G. We haven’t figured the investment dedicated for this service. It is a bundle project investment comprising the whole network,” said Sira Limchareon, senior manager, business development at CAT.
Indonesia too is witnessing more WAP applications. In August, PT Cakram Data Lingga Duaribu launched the first WAP content site in Indonesia. Travel and tourism information is available through some WAP Web sites, and several Indonesian operators offer WAP services.
