The Money Is Still in Messaging, Despite 3G"

While 3G enables the introduction of richer applications over high-speed data network, simple messaging applications would continue to drive mobile data revenues in Asia Pacific says Janice Chong, industry manager at global growth consulting company, Frost & Sullivan. In cellular markets ex-Japan and South Korea, revenues from messaging alone contributed as much as 72 percent (or US$11.64 billion) to the total mobile data market in 2005.

"The lack of consumer education and killer applications, coupled with the limited availability of advanced and affordable handsets in most Asia-Pac countries are inhibiting the adoption of richer applications,"

A recent study by Frost & Sullivan reveals that messaging will remain the top revenue earner in the Asia Pacific mobile data market in the short to medium term, driven by the less mature and developing markets outside of Japan and South Korea. Even with the increased offerings in free bundled short messaging services (SMS), messaging will continue to account for more than half of the mobile data market till 2011.

Nevertheless, some exciting applications that will gain increasing attention are full music downloads and mobile video (mobile TV and video streaming). "These applications are expected to surpass 'commoditized' basic applications such as ringtones, ringback tones, wallpapers and icons to become the biggest revenue contributor to mobile entertainment applications," explains Chong."

Posted to the site on 21st July 2006