Asia-Pacific to lead global wireless growth: Executive

Asia-Pacific to lead global wireless growth: Executive

SINGAPORE (AFP): The Asia Pacific region will remain the
fastest-growing market for wireless telecommunications, with
China projected for more explosive growth, a top industry
executive said on Thursday.

Kurt Hellstrom, president and chief executive of Swedish
handphone maker Ericsson, said the current slump in the industry
will just be a "blip."

"In spite of the current turmoil in the business, we still
expect continued growth in the number of mobile subscribers
worldwide," he said in a keynote address at the CommunicAsia
telecommunications trade fair here.

The number of mobile phone subscribers worldwide is forecast
to grow to between 920 million and 950 million this year, and the
industry is on track to meet its target of one billion mobile
phones by next year, he said.

"We expect the Asia-Pacific region to continue to be the
fastest growing market in the coming years," he said, with the
number of mobile phone users doubling from 250 million users in
2000 to 550 million in 2004.

"In total, I think there is no doubt that the whole Asia-
Pacific region is in the fast lane in the global telecom race,"
Hellstrom said.

China, which has a population of 1.2 billion people, leads the
way for phenomenal growth after surpassing 100 million mobile
phone subscribers in April, more than the entire population of
most countries.

More than four million new subscribers are being added each
month in China, Hellstrom said.

"We can conclude that China has arrived at the top position as
the largest market for mobile phones," he said.

Hellstrom defended the delay in the rollout of the much-hyped
third generation (3G) services which allow voice, data and video
transmission at very fast speeds through wireless devices such as
the mobile phone.

"3G is a major technology shift. It is just as important as
the introduction of mobile phones 20 years ago and more important
than the introduction of digital technology 10 years ago," he
said.

He also said handset makers will soon be releasing handsets
compatible with the general packet radio service (GPRS) -- the
technology between the current digital formats and 3G.

Manufacturers have come under fire from operators for the
delay in the rollout of the handsets despite the infrastructure
being ready for GPRS.

By the end of the year, eight vendors will be releasing GPRS-
ready handsets in large volumes, he said.

Asian companies such as Singapore Telecommunications Ltd.
(SingTel) and NTT DoCoMo of Japan are already positioning
themselves ahead of the expected recovery by exploring business
opportunities outside their home countries, Hellstrom said.

He cited SingTel's acquisition of Cable and Wireless Optus of
Australia and NTT DoCoMo's move to expand into Europe and the
United States.

"The Asia-Pacific market is integrating itself in the global
telecom industry in a very dynamic manner," he said, adding that
local carriers were positioning themselves as regional and global
players.