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3G Domination to Usher New Breed of Mobile Services, Predicts IDC

  • 14 June, 2007 15:09

<p>NORTH SYDNEY, June 13th, 2007 - IDC's latest research of the Australian mobile market found the adoption of next-gen mobile services blossomed last year, with over one million Australians deciding to take up a 3G mobile service.</p>
<p>"Today mobile phones have become central to the day to day life of Australian's. IDC predicts that mobile phone usage will become exponentially richer with 3G/3.5G services expected to dominate by the end of the decade," predicts Jerson Yau, Research Analyst for Wireless and Mobility, IDC Australia.</p>
<p>"IDC foresees a renaissance on the mobile platform towards delivering instantaneous convenience, increasing relevancy against other communication mediums, and triggering next-gen services and new business models. Hastening to 3.5G upgrades is anticipated to allow mobile operators to focus on strength and quality of service, rather than price warring," added Mr Yau.</p>
<p>The study, titled "Australia Cellular 2006-2011 Forecast and Analysis: Step It Up," provides an update of IDC's five-year forecast of the Australian cellular (mobile) market through a comprehensive market overview, delving into key components of the non-voice market.</p>
<p>This study reviews major developments, operator profiles, key performance indicators (subscribers and service revenues), and market projections by platform, service, activity, and billing from 2007 to 2011. IDC provides essential guidance to assist mobile operators and stakeholders address tactical opportunities, as well as fuel strategic initiatives and developments.</p>
<p>IDC’s study reveals:</p>
<p># There were 20.42 million mobile Services in Operation (SIOs) at the end of 2006, representing a penetration of 98.4% of the Australia population. The blended Average Revenue Per User (ARPU) registered just under A$38.50 per month, contributing to A$9.25 billion in mobile service revenues with a non-voice component of 21.2%.</p>
<p># Telstra capitalised on its market jolting the 3G/3.5G network launch and upheld their market leadership, while their chief competitor, Optus, clawed back from their ordinary performance in 2005 and strengthened their market position. More nimble operators, Vodafone and Hutchison, enjoyed growth in subscribers and revenue shares whilst the wholesale market took heavy loses in both these categories.</p>
<p># IDC forecasts that in 2007: mobile SIOs will climb to 20.85 million, representing a penetration of 99.2% of the population and will surpass the 100% threshold in 2008; with mobile services revenues expected to be A$9.9 billion with a non-voice component of over 25.2%. By 2011, IDC believes that the mobile market will become a A$12.2 billion market, with over 22.1 million SIOs who will contribute to a non-voice component of 39% of total revenues.</p>
<p># IDC recommends that mobile operators capitalise on this opportunity to (re-)educate the market with regards to the 3G/3.5G platform and its services, thus ensuring that ongoing pricing and service offerings are aligned in a predictable and sustainable manner.</p>
<p># IDC recommends that close attention continues to be paid to the business segment. Mobile operators should do more to emphasise the productivity benefits of mobility as an essential tool, and increasingly tap into non-voice services for business applications. For the consumer segment, highly consumable and relevant content packs will be welcomed, and will assist in further personalising the consumer experience.</p>
<p>IDC research:</p>
<p>If you would like further information or to purchase IDC research, please contact Gary Clarke, IDC Associate VP of Sales via email or phone 02 9925 2226.</p>
<p>For press enquiries please contact:
Jerson Yau
Research Analyst, Wireless &amp; Mobility
Phone: 61 2 9925 2205
<p>Mercie Clement
Senior Analyst, Wireless &amp; Mobility
Phone: 61 2 9925 2258
<p>Click here to view the press release online:</p>
<p>Click here to subscribe to IDC press releases and newsletters online:</p>

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