ITU TELECOM ASIA 2004 B1: Defining the personal mobile space 7 September 2004-Busan, Republic of Korea
The mobile Internet digital divide in Asia-Pacific: Two personal mobile spaces? Michael Minges Senior Market Analyst
Source: SKTelecom.
Mobile = ubiquitous “computer in your pocket”
% households with mobile phone, ‘03
“The latest … handsets can offer practically the same performance as a computer did 5 years ago.” — NTT DoCoMo
Source: TMG.
Japan
“In the coming years, the mobile handset will be the hub of all other devices, enabling people to access information and technology anywhere at any time….” —Samsung
Singapore Taiwan Korea 0
50
100
“…it is relatively small, you don't need a desk, you don't need to be in a particular place. And you don't have to be literate to use them or speak English. These are all constraints when it comes to operating a computer.” — Intel ethnographer Genevieve Bell
10 8
Mobile:Fixed
Mobile:PC
Source: TMG.
6 4 2 0
China Indo. India
M'sia
Phil.
Thai.
Status of high-speed mobile networks, Asia-Pacific, 2003 High-speed mobile subscribers as % of total mobile subscribers 30% 25% Developed
20% ASIAPACIFC
15% 10%
Developing
5% 0% 2000
2001
2002
S. Korea India Japan N. Z'land AP Taiwan H. Kong Singapore Thailand Malaysia Australia China Philippines Indonesia
2003 Source: TMG.
0%
Asia-Pacific High-speed networks in AsiaPacific, June 2004 GPRS: 40 1XRTT: 13 EDGE: 4 WCDMA: 4 1XEV-DO: 3 25% 50% 75% 100 %
The mobile Internet digital divide… …is worse than the conventional digital divide Japan
31.0%
S. Korea
24.8%
Singapore
7.9%
Taiwan
2.0%
H.Kong
2.0%
Australia
1.6%
N.Zealand
1.3%
Malaysia
0.9%
Thailand
0.5%
Philippines
0.4%
China 0.2% Indonesia 0.1%
Japan
60.6
S. Korea
60.3
N.Zealand
52.6
Singapore
51.0
H. Kong
47.2
Australia
46.2
Taiwan
Mobile Internet users as % of population, 2003
India 0.0%
Source: TMG.
39.0
Malaysia Thailand
34.5 9.6
China
6.2
Philippines
4.9
Indonesia
4.6
India
3.0
Internet users as % of population, 2003
Two “killer” Mobile Internet applications Starbucks, Gimpo Airport, Seoul
Verizon Wireless VZACCESS with Venturi software Allows traditional credit card functions to be performed by chips embedded in cellular handsets. 1.2 million subscribers at December 2003
SMS “problem” High text message revenue makes operators reluctant to invest in mobile Internet…SMS works on virtually any phone and does not need high speed network Mobile data as % total mobile revenue, 2003
40%
Philippines
35% 30% 25% 20%
Japan
15%
Indonesia Malaysia
Australia
10%
S. Korea
Singapore
N. Zealand China India
5% 0% 0
50
100
150
SMS per subscriber per month, 2003
Source: TMG.
200
SMS “problem” High text message revenue makes operators reluctant to invest in mobile Internet…SMS works on virtually any phone and does not need high speed network 100%
SMS as % of mobile data revenue (left)
90%
250
SMS per subcriber per month (right)
80%
200
70% 60%
150
50% 40%
100
30% 20%
50
10% 0%
0 Philippines
China
Japan
Korea
Note: SMS revenue % for Philippines refers to SMART, China to China Mobile (HK), Japan to Vodafone and Korea to KTF. SMS usage figures refer to whole country. Source: TMG adapted from operator reports.
Handset divide Korea Japan Singapore H. Kong Australia Malaysia Thailand Taiwan China India Philippines
% of mobile subscribers with Internetenabled mobile phone, 2003
Indonesia
0%
50%
100%
S E G M E N T A T I O N
Millions
“…for the upgrade market, camera phones and phones with other multimedia features”
16
Handset sales
14
New subscribers
12
Difference
2003
10 8 6 4 2 0 -2 -4 -6
Indonesia Philippines
India
“…launched a line of affordable, entry level phones…” Source: TMG.
Developing nations have best demographics for mobile Internet! % of users less than 30, by mobile service, NTT DoCoMo, 2004
50
Philippines Malaysia India Indonesia Thailand China
27
N.Zealand Singapore
% population < 15, 2003
Australia S. Korea H.Kong Japan
2G Source: NTT DoCoMo.
3G
0 Source: UN.
20
40
Conclusions • Ubiquitous – Mobile widely available relative to other ICT devices
• High-speed – Now available
• Yet a two-track mobile Internet is developing – Some nations way ahead – Others still “stuck” in text-mode
• Solutions – Regulatory incentives such as more competition, especially technological, and assisting mobile industry to meet broadband aspirations – Manufacturers and operators to re-think “segmentation”
Thank you! This presentation is based on:
Asia-Pacific Mobile Multimedia Outlook 2004 Featuring an overview of mobile multimedia trends in 13 key Asia-Pacific markets covering 98% of subscribers in the region. Available from www.tmgtelecom.com/reports More information: reports@tmgtelecom.com