In Asia Pacific, Mobile Propels Economies and Empowers the Masses

Asia Pacific has been the standard bearer in the mobile telecommunications industry—not only for manufacturing mobile devices and creating mobile content and services, but also for its consumer adoption rates. This year, as Asia Pacific crosses the 3 billion mark in mobile connections, it will account for half of the world’s connections.

We recently completed a report, commissioned by the GSM Association, that examines the state of the mobile industry in Asia Pacific. (To read the study, see “The Mobile Ecosystem in Asia Pacific.") Asia Pacific is destined to continue its mobile surge. Smartphone and tablet penetration is increasing rapidly as lower-cost handsets and cheaper mobile usage rates drive up mobile traffic. Mobile operators have invested heavily in upgrading the mobile network infrastructure. The region is a center of innovation for mobile content and services with advances in 4G (Japan and South Korea have the world’s fastest average mobile connection speeds), and innovations in mobile communications (messaging), entertainment (video), and m-commerce (purchasing). In 2010, the mobile industry in Asia Pacific’s 17 largest countries was worth $310 billion, or 1.7 percent of total GDP.

Yet, even as mobile technologies spur nations and economies—both monetarily and in employment opportunities—the collateral effects of mobile are having a profound impact on society. For example, mobile is known for empowering the masses as like-minded people use their mobile devices to organize against better-resourced adversaries in their fights for reform or equality. The Arab Spring is one example. Recent elections in Malaysia and Singapore have been characterized by citizens’ strong activism, thanks largely to social networks accessed through mobile handsets, tablets, and personal computers. Mobile can also benefit the unscrupulous as we learned last summer during the London riots. Messenger services allowed the hooligans the advantage of real-time group conversations to plan attacks and warn of police presence.

Data-enabled mobile devices offer greater flexibility for processing information, allowing everyone to lead more productive lives and helping industries deliver goods and services more efficiently. Access to more and better information means markets function more efficiently. And consumers who can access information anytime anywhere offers deep social, intellectual, and financial benefits.

The inaugural Mobile Broadband Readiness Index (MBRI) has shown that countries creating an ecosystem conducive to growth in mobile data services have the potential to make rapid leaps ahead of their peers. In 2011, Japan rises to the top of the index above Singapore, driven by its early 4G rollout and a pro-innovation environment. Hong Kong and Vietnam have made leaps forward, demonstrating their strong commitment to fostering a successful mobile broadband landscape.

The long-term growth prospects for mobile broadband in Asia Pacific are exciting as consumers are hungry for bandwidth-intensive applications and services that can transform the way they live and work. The mobile industry is helping navigate greater economic and social benefits throughout the region.

Naveen Menon is a partner based in the Singapore office and is leader of the firm’s communications and high tech practice in Asia Pacific.