Texting also popular in emerging Asian countries--IDC
By Lawrence Casiraya
INQUIRER.net
First Posted 14:58:00 03/18/2008
Filed Under: mobile phones, Telecommunications Services, Market research, Internet
MANILA, Philippines -- Text messaging on mobile phones is not only popular in the Philippines but is also a big hit in Bangladesh, Pakistan, Sri Lanka and Vietnam, according to a report from research firm IDC.
These four countries--defined as emerging markets by IDC--have shown tremendous growth in revenues derived from data services, which covers mobile data, fixed line and broadband Internet.
Collectively, this segment grew by more 250 percent year-on-year, reaching $952 million in 2006, according to IDC estimates. The four countries combined have a mobile subscriber base of about 89 million as of 2006.
IDC expects mobile data services, in particular, to grow at least 40 percent every year until 2011, driven by increased text messaging usage.
Karen Rondon, research manager for IDC Philippines, noted in IDC's report that consumers in these emerging markets are still very much cost-conscious and measure benefits in the short- to medium term.
Rondon said: "Services that require small immediate spending while providing immediate benefits would be most attractive to end-users."
With a combined population of some 418 million, mobile penetration remains low at above 20 percent in these countries. IDC, however, expects mobile services to pick up further as more people in these countries begin owning handsets.
"The Philippines is ahead in terms of maturity," said Rondon, when asked in a phone interview how the country compares with these emerging markets.
"But strong adoption represents huge growth potential and a lot of room for foreign investors in these markets," she added.
Meanwhile, IDC also noted that favorable government policies in these countries were also driving growth in Internet access. Also, the report noted that people are becoming more aware and "educated" about the Internet.
In countries such as Bangladesh, a growing number of its citizens who are migrating abroad could potentially drive future adoption through constant communication with families back home.
DSL and prepaid dial-up services are the most preferred modes of Internet access services in these emerging markets, IDC said.
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