~Asian 3G networks -- No turning back

~Asian 3G networks -- No turning back

According to IDC's latest Competitive Analysis report, "3G
Developments in Asia and Pacific (excluding Japan): No Turning
Back", 3G subscribers reached 10.5 million in 2004, and is
expected to reach 142.6 million in 2009, growing at a CAGR of
68.5 percent.

As the various strategic components for a successful 3G model
start to come together, 3G will start to gain momentum as the
rate of adoption is influenced by the quality of the user
experience.

Beyond handsets and networks, several other crucial elements
fall within the strategy of the operator in making 3G a success.
"A complete strategy involves looking at target market, tariff,
branding, content and applications, portal, marketing and
distribution, service quality; all of which tantamount to
providing quality of the end-user experience," Alayne Wong,
Research Manager of Wireless Communications Research, IDC
Asia/Pacific says in a report posted at www.3gnewsroom.com

"If implemented well, new revenue generating opportunities
from 3G services abound for service providers."

One of the early pains of operators has been the lack of 3G
handset choices, which has deterred impending operators who have
been weighing their time to market, biding for the perfect time
to optimize returns with a fast take-off.

Today the availability of suitable devices has improved with
models coming into the market with enhanced form factors and
feature specifications.

But as we progressively cross this first hurdle, network
performance, pricing and service positioning will become
increasing areas of focus to move 3G from niche to mainstream.
Integral to the 3G value proposition lies content and
applications but the jury is still out on how compelling video
calling is, to warrant a premium price.

To top this, a deeper enigma lies in target marketing to
extend the reach of 3G services across different consumer and
enterprise segments. However, once 3G networks are launched,
there is no turning back. As more operators come into the market
with 3G services, competition will drive 3G into the mainstream.

South Korea is a trailblazer with more than a quarter of
mobile subscribers on 3G networks after three years of operation.
More importantly, the mobile data ARPU of 3G subscribers in South
Korea has increased to more than double that 2G subscribers.

In Australia and Hong Kong, after an initial period of slow
take-up and tweaking with the competitive positioning of 3G
services, 3G has started to gain traction with encouraging signs
of sustained adoption. A

s a next generation technology and service, 3G can be a
powerful tool for operators to leverage to compete in the
marketplace. 3G provided the first mover, Hutchison in both
Australia and Hong Kong, the opportunity to lure high ARPU
customers from its competitors.

For the region, the gradual and steady take-up is sending
signals that various key elements are in place to spur 3G
adoption and the scene is set for progressive launches by more 3G
entrants.

By the end of the forecast period in 2009, IDC expects that 3G
services would have penetrated more than 12 percent of total
mobile subscribers in the region, with South Korea leading at
63 percent, followed by Hong Kong, Australia, Singapore then
Taiwan. Link: www.3gnewsroom.com

3G Subscribers in Asia/Pacific (ex-Japan)

2004 2009
Hong Kong 259,000 3,336,598
South Korea 9,541,407 25,230,800
Australia 410,000 6,465,470
Singapore 0 744,800
Malaysia 0 1,612,500
Taiwan 0 3,960,391
PRC 0 97,973,215
Philippines 0 1,020,000
Thailand 0 1,660,876

Source: IDC