Summary
Mobile markets in Asia continued to experience strong growth during 2009 and into 2010, this despite many countries being close to or over the 100% penetration mark. With total subscriber numbers in the region having grown by around 20% in 2009, there was certainly some moderation of growth taking place, but the underlying strength of the market was still evident. It was anticipated that by end-2010 there would be around 2.6 billion mobile subscribers across Asia.
Of special note has been the remarkable growth in the two massive markets of India and China where monthly net additions are regularly between 10 million and 15 million subscribers. These two countries alone account for over 22% and 35% overall market share in the Asia region respectively; or a combined 57%.
There is still room for mobile growth in Asia. Markets with large populations and relatively low penetration rates, such as India, China, Philippines, Pakistan and Indonesia, will continue to grow at a rapid rate. In the more mature markets such as Japan, Taiwan and South Korea, mobile numbers will rise less than 5%. Growth is being driven by various factors, including government investment to drive the economy; infrastructure building after years of neglect or fixing the after effects in war torn countries, and also major foreign investment.
In the developing economies quick and easy mobile uptake is the preferred, and often only, option for subscribers, exacerbated by low fixed-line deployments. These countries also offer investors the promise of continued growth of the mobile infrastructure and subscriber numbers. While subscriber growth and market share is important in the developing economies, there comes a point where the venture must result in profit.
Operators still face the huge challenge of trying to prevent ARPU slide as mobile services spread to poorer parts of the country and the population. To some extent, a large customer base will help to offset low spend but it is also anticipated that new non-voice services will help to drive revenue. Operators are developing mobile services such as mobile banking, remittence payments, and mobile health services that take advantage of a lack of access by the poor to social infrastructure such as banks and hospitals.
ChinaChina continues to extend its lead as the single largest mobile market in the world. The vast majority of services are GSM-China is the largest GSM market in the world.
By early 2010, the number of mobile phone users reached over 745 million and mobile penetration was at 56.2%. The robust growth was due to an expanding rural market and the increasing number of people who have acquired more than one mobile phone. With many of the more prosperous eastern Chinese cities saturated, rural areas are the new target. However, this massive push into China's rural areas has meant that ARPU is being squeezed. Both China Mobile and China Unicom have been grappling with a steady decline in the average revenue earned from new users. As in other markets around the world, this trend has been fuelled by the growing popularity of prepaid cards instead of the more lucrative postpaid subscriber contracts.
In 2009 China added 26.5 million subscribers per quarter with China Mobile accounting for over 70% share of the market. At end-2009, China had amassed 233 million mobile Internet customers, accounting for 60.8% of the country's total Internet users. Moreover, CNNIC found that some 30.7 million users'only means of accessing the Internet in 2009 was via their mobile phone. Mobile Internet access services in China generated revenues of RMB14.78 billion in 2009, increasing by 25.8% year-on-year.
The long awaited 3G licences were finally awarded in late 2008 and by mid 2009 all three operators were aggressively building out their networks in over 340 cities across China. China Mobile was awarded a TD-SCDMA licence, China Unicom a WCDMA licence and China Telecom a CDMA2000 licence. By end 2009 though the number of 3G subscribers were well below expectations at 15 million.
Hong KongHong Kong's mobile market has some of the cheapest tariffs in the world amidst a highly competitive environment. This is one of the reasons why it is has such a high penetration rate. An ongoing price war has cut mobile phone air-time rates to levels where operators have become increasingly reliant on provision of non-voice value-added services to maintain margins. This, in turn, has made 2.5G and 3G services of considerable importance to the operators. Entering 2010, total mobile subscribers were over 12 million including over 3.8 million 3G subscribers.
JapanJapan's mobile market place remains an aggressive arena. Maturity in the market, with 3G services accounting for over 90% of the total market of 110 million subscribers going into 2010, has meant that operators are increasingly fighting to retain customer loyalty.
The level of 3G take-up has been encouraged by the operators themselves, which earlier had announced their intentions to migrate all subscribers from 2G to 3G networks as they sought to acquire stronger ARPUs through offering data rich services. By doing this they believed they could top up revenues, which had begun to flag. Now that the market is finally at the stage where 3G will soon account for 100% of the market, operators are turning to Super 3G or LTE. NTT DoCoMo, KDDI, Softbank Mobile and eMobile are all due to implement LTE by 2012.
IndiaThere were around 525 million mobile subscribers in India at the start of 2010. This was up from 345 million 12 months earlier as the market continued to power forwards adding an average of 15 million customers each month. In other words, the annual growth rate was still around 50% as penetration passed the 40% milestone. India's mobile operators have continued to push their services into the untapped parts of the market-especially the rural and remote parts of the country-attracting new customers with low call rates, cheap handsets and creative packages. While running with some of the lowest mobile tariffs in the world, the market has also seen some of the highest usage rates in the world, a bonus for the operators in this highly competitive market.
The Cellular Operators Association of India (COAI)-which represents the telecom companies offering GSM services in India-said that it expected India's mobile subscriber base to reach close to 900 million by 2012. Even with a subscriber base of 900 million, the COAI noted, the teledensity will still only be just 72%.
IndonesiaIndonesia's mobile market has expanded rapidly in recent years. The number of subscribers had reached the 150 million mark in early 2010. This was up from 60 million just three years earlier. Annual growth remained strong, although it had eased somewhat, no doubt impacted to some extent by the softening of the economy following the global financial crisis of 2008/2009. Down from around 30% in 2008, the annual growth rate for mobile subscribers was running at just over 15% in 2009; growth of this order was set to continue, as there was room for more growth over the coming years. The subscriber base was set to breach the 200 million milestone some time in 2011. Indonesia has been quick off the mark with its roll-out of 3G networks; by mid-2009 there were already around 10 million 3G subscribers in the market.
VietnamVietnam's mobile market has been developing at a rapid pace, after what was generally regarded as a slow start. Subscriber numbers have been increasing at an annual rate of between 50% and 100% per year. This pattern was continued through 2009 and into 2010. The number of subscribers was set to top 110 million by end-2010. Importantly, the government has committed itself to the continued growth of mobile networks, especially encouraging the extension of coverage to the provinces. In what was already a highly competitive market, 2009 saw the arrival of a seventh mobile operator, as subscriber penetration hovered around the 100% mark. The government issued four 3G licences in 2009, signalling what will probably be the market's next phase in its development.
Asia-mobile subscribers by country-2009-2010
Country | 2009 | (million) | 2010 (e) | (million) |
Afghanistan | 13.00 | 18.00 |
Armenia | 2.55 | 2.60 |
Azerbaijan | 7.00 | 8.25 |
Bangladesh | 49.00 | 53.00 |
Bhutan | 0.39 | 0.50 |
Brunei Darussalam | 0.45 | 0.49 |
Cambodia | 5.10 | 6.30 |
China | 747.40 | 860.00 |
Georgia | 4.00 | 4.50 |
Hong Kong | 12.05 | 12.70 |
India | 505.00 | 760.00 |
Indonesia | 150.00 | 180.00 |
Japan | 111.00 | 116.50 |
Kazakhstan | 16.50 | 18.00 |
Kyrgyzstan | 4.50 | 5.30 |
Laos | 2.60 | 3.25 |
Macau | 1.04 | 1.09 |
Malaysia | 30.40 | 33.40 |
Maldives | 0.43 | 0.45 |
Mongolia | 1.95 | 2.05 |
Myanmar | 0.42 | 0.48 |
Nepal | 6.29 | 8.20 |
Pakistan | 97.60 | 110.00 |
Philippines | 78.50 | 86.00 |
Singapore | 6.85 | 7.30 |
South Korea | 47.90 | 48.40 |
Sri Lanka | 14.00 | 15.50 |
Taiwan | 26.50 | 27.50 |
Tajikistan | 4.10 | 5.00 |
Thailand | 67.50 | 73.00 |
Turkmenistan | 1.80 | 2.70 |
Uzbekistan | 18.40 | 25.75 |
Vietnam | 111.00 | 127.00 |
Total | 2,145.22 | 2,623.21 |
Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents 
1. Afghanistan
1.1 Overview of Afghanistan's mobile market
1.1.1 Mobile statistics
1.1.2 Mobile licences
1.2 Third Generation (3G)
1.3 Satellite mobile
2. Armenia
2.1 Overview of Armenia's mobile market
2.1.1 Mobile statistics
3. Azerbaijan
3.1 Overview of Azerbaijan's mobile market
3.1.1 Mobile statistics
3.2 Mobile technologies
3.2.1 Trunk Mobile Radio (TMR)
4. Bangladesh
4.1 Overview of Bangladesh's mobile market
4.1.1 Mobile network shutdown
4.1.2 Mobile statistics
4.2 Regulatory issues
4.2.1 Infrastructure sharing
4.2.2 Spectrum allocation
4.2.3 SIM registration
5. Bhutan
5.1 Overview of Bhutan's mobile market
5.1.1 Mobile statistics
5.2 Regulatory issues
5.2.1 Second mobile licence
5.3 3G mobile
6. Brunei Darussalam
6.1 Overview of Brunei's mobile market
6.1.1 Mobile statistics
7. Cambodia
7.1 Overview of Cambodia's mobile market
7.1.1 Mobile statistics
7.2 Regulatory issues
8. China
8.1 Overview of China's mobile market
8.1.1 Mobile statistics
8.2 Prepaid cards (SIM and PIM cards)
8.3 Mobile technologies
8.3.1 PAS/PHS (Little Smart/Xiaolingtong)
8.3.2 GSM
8.3.3 General Packet Radio Service (GPRS)
8.3.4 Enhanced Data for GSM Evolution (EDGE)
8.3.5 CDMA
8.4 3G mobile
8.4.1 Overview
8.4.2 3G Licences
8.4.3 3G Investments
8.4.4 3G forecasts for China
8.5 3G Technologies
8.5.1 TD-SCDMA
8.5.2 WCDMA
8.5.3 CDMA2000
8.6 4G mobile
8.7 Mobile handset market
8.7.1 Overview
8.7.2 3G TD-SCDMA handsets
8.7.3 Smartphone market
8.7.4 Android
8.7.5 BlackBerry
8.7.6 iPhone
8.7.7 Netbooks
9. Georgia
9.1 Overview of Georgia's mobile market
9.1.1 Mobile statistics
9.1.2 Impact of the conflict with Russia
9.2 Regulatory issues
9.2.1 3G mobile
9.2.2 Spectrum auctions
10. Hong Kong
10.1 Overview of Hong Kong's mobile market
10.1.1 Mobile statistics
10.2 MVNO services
10.3 Regulatory issues
10.3.1 Mobile Number Portability (MNP)
10.3.2 Spectrum licensing
10.3.3 Personal Communications Services (PCS)
10.4 Handsets
10.4.1 iPhone
10.5 Mobile voice services
10.5.1 Prepaid
10.6 3G mobile
10.6.1 3G licensing
10.6.2 3G launches
10.7 4G
11. India
11.1 Overview of India's mobile market
11.1.1 Mobile statistics
11.2 Mobile market segments
11.3 Development issues
11.3.1 MVNOs
11.3.2 Spectrum
11.3.3 Rural expansion
11.3.4 Future growth
11.3.5 Foreign investment
11.3.6 Revenue and ARPU
11.3.7 Pricing and usage
11.4 Regulatory issues
11.4.1 Background
11.4.2 Year 2009
11.4.3 Year 2008
11.5 Mobile technologies
11.5.1 Overview of mobile technologies used in India
11.5.2 GSM
11.5.3 CDMA
11.6 3G mobile
11.6.1 Background
11.6.2 Network trials
11.6.3 Licensing process
11.6.4 Auction for 3G licences-2010
11.6.5 Background to the 3G auction process
11.6.6 BSNL and MTNL
11.7 Mobile voice services
11.7.1 Prepaid
11.7.2 Satellite mobile
12. Indonesia
12.1 Overview of Indonesia's mobile market
12.1.1 Mobile statistics
12.2 Background to market development
12.2.1 Foreign ownership regulations
12.3 Mobile technologies
12.3.1 GSM
12.3.2 CDMA
12.3.3 Analogue services (AMPS and NMT)
12.3.4 GPRS
12.3.5 3G mobile
12.4 Mobile voice services
12.4.1 Prepaid
12.4.2 Satellite mobile
13. Japan
13.1 Overview of Japan's mobile market
13.1.1 Mobile Statistics
13.2 Market developments
13.3 Mobile technologies
13.3.1 PDC
13.3.2 CDMA
13.3.3 PHS
13.3.4 3G mobile
13.3.5 4G mobile
13.3.6 Japan: A key region for LTE development
13.3.7 Mobile handset market
13.4 Mobile services
13.4.1 Market background
13.4.2 Prepaid cards
13.4.3 Push-to-Talk (PTT)
14. Kazakhstan
14.1 Overview of Kazakhstan's mobile market
14.1.1 Mobile statistics
14.2 Mobile technologies
14.2.1 3G
14.2.2 Trunk Mobile Radio (TMR)
15. Kyrgyzstan
15.1 Overview of Kyrgyzstan's mobile market
15.1.1 Mobile statistics
16. Laos
16.1 Overview of mobile market in Laos
16.1.1 Mobile statistics
16.2 3G mobile services
17. Macau
17.1 Overview of Macau's mobile market
17.1.1 Mobile statistics
17.2 Liberalisation of the mobile market
18. Malaysia
18.1 Overview of Malaysia's mobile market
18.1.1 Mobile statistics
18.1.2 Mobile infrastructure
18.2 Mobile technologies
18.3 Mobile voice services
18.3.1 Prepaid cards
18.3.2 Mobile Number Portability
18.3.3 Roaming
19. Maldives
19.1 Overview of Maldives' mobile market
19.1.1 Mobile statistics
20. Mongolia
20.1 Overview of Mongolia's mobile market
20.1.1 Mobile statistics
21. Myanmar
21.1 Overview of Myanmar's mobile market
21.1.1 Mobile statistics
22. Nepal
22.1 Overview of Nepal's mobile market
22.1.1 Mobile statistics
22.2 Satellite mobile
23. North Korea
23.1 Overview of North Korea's mobile market
23.2 Mobile technologies
23.2.1 GSM
23.2.2 CDMA
24. Pakistan
24.1 Overview of Pakistan's mobile market
24.1.1 Mobile statistics
24.1.2 Competitive market
24.2 Regulatory issues
24.2.1 Additional licences
24.2.2 3G licences
24.2.3 Calling Party Pays (CPP)
24.2.4 Licensing in Azad Jammu and Kashmir
24.3 Mobile voice services
24.3.1 Prepaid
24.3.2 Satellite mobile
25. Philippines
25.1 Overview of the Philippines' mobile market
25.1.1 Mobile statistics
25.2 Regulatory issues
25.2.1 Mobile licences
25.2.2 Mobile Number Portability (MNP)
25.3 Mobile technologies
25.3.1 Personal Communication Services (PCS)
25.3.2 3G mobile
25.4 Mobile voice services
25.4.1 Prepaid cards
26. Singapore
26.1 Overview of Singapore's mobile market
26.1.1 Mobile statistics
26.1.2 Average Revenue per User (ARPU)
26.2 Mobile Networks
26.2.1 GSM
26.2.2 3G mobile
26.3 Mobile voice services
26.3.1 Prepaid
26.3.2 International roaming
26.3.3 Satellite mobile
27. South Korea
27.1 Overview of South Korea's mobile market
27.1.1 Mobile statistics
27.2 Mobile technologies
27.2.1 Analogue (AMPS)
27.2.2 Personal Communication Service (PCS)
27.2.3 CDMA
27.2.4 Wideband CDMA (WCDMA)
27.2.5 HSDPA 3.5G mobile in South Korea
27.2.6 High-Speed Uplink Packet Access (HSUPA) 3.5G mobile in South Korea
27.2.7 TD-SCDMA
27.3 3G mobile
27.4 4G mobile in South Korea
27.5 Mobile handset market
27.5.1 Mobile handset manufacturers
27.5.2 Personal Digital Assistants (PDAs)
27.6 Mobile voice services
27.6.1 Market overview
27.6.2 One-Phone-fixed and mobile services over one device
28. Sri Lanka
28.1 Overview of Sri Lanka's mobile market
28.1.1 Mobile statistics
28.2 3G mobile
28.2.1 Dialog Telekom 3G
28.2.2 Mobitel 3G
28.2.3 Bharti Airtel 3G
28.3 Satellite mobile
28.3.1 MTN Networks
28.3.2 Mobitel