Asia Pacific Mobile Observatory

A.T. Kearney and the GSM Association recently joined forces to perform a comprehensive study of the Asia Pacific mobile industry.1 The world's largest mobile market, Asia Pacific has tripled in size since 2003, growing at 26 percent CAGR to reach 1.7 billion connections in 2008. By the end of 2009, the market is expected to reach two billion connections and to exceed three billion connections in 2013. The following are the main findings in this year's study.

The mobile ecosystem contributes heavily to the Asia Pacific economy. The economic contributions of the Asia Pacific mobile ecosystem, comprising the 17 largest countries in the region, amounts to approximately $368 billion, or 2.82 percent of aggregate GDP (see figure). The industry contributes more than $100 billion in public funding and employs more than 10 million people.

The market is developing along two parallel paths. The Asia Pacific mobile market is developing along two paths: one path is bringing mobile access to the next one billion consumers at the bottom of the pyramid. Roughly two billion consumers in emerging countries—primarily China, India, Indonesia, Pakistan and Bangladesh—still do not have mobile connections. This presents an opportunity for mobile operators to serve a significant untapped market, although doing so will require innovative business models and relevant products and services. The other path constitutes advanced mobile users in developed markets who are continually finding new ways to use mobile phones, fueled by innovations from mobile operators and the broader ecosystem.

Figure: Economic contribution of the mobile ecosystem in Asia Pacific

The industry is making progress toward environmental sustainability. Mobile operators and vendors are helping to mitigate the effects of climate change, reducing emissions and finding new ways to improve energy efficiency. Examples include designing low-energy base stations (powered by renewable energy), sharing infrastructures, and reducing device life-cycle emissions. The industry is also acting as a catalyst for other sectors, further reducing emissions through machine-to-machine mobile technologies that deliver "smart solutions."

Regulators have a critical role to play. The study finds four key roles for regulators: to provide transparent, predictable and consultative regulatory regimes; to increase penetration by reducing mobile-specific taxation and fees; to provide incentives that increase universal access, and; to review spectrum management policies and accelerate harmonized allocation.

1 The GSM Association (GSMA) is the global trade association representing more than 700 GSM mobile phone operators across 217 countries. In addition, more than 180 manufacturers and suppliers are key partners that support the Association's initiatives.


The perspectives in this commentary were derived from The Asia Pacific Mobile Observatory Report, a study conducted by A.T. Kearney for the GSM Association.

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