Contents - Connect-World

Mobile Data
“Technology has to be
converted into innovative,
compelling, content
and applications.”
of October 2004 and an average of 5.5
million new users signing up each
month. China, with its enormous population,
continues to lead the world in
overall subscriber growth and has the
highest potential for future growth in
the world.
Over the last decade, the China mobile
market has gradually migrated into
the digital era. SMS-based applications
dominate growth9.8 billion
short messages (SMS) were sent during
the Chinese New Year, in January
2004, alone. At RMB 0.1 per SMS
(approximately 850 Renminbi = US$
1.00), RMB980 million in revenue per
year has been generated over eight
years.
According to market researchers, e-
mail is the most used mobile data
service. Subscribers tend to use their
handsets, as a substitute for the PC, to
send and receive e-mail and text messages.
In this way, the simple yet useful
SMS acts as a bridge between the
wireless Internet and the wireline
Internet.
Wireless subscriber growth is experiencing
robust expansion in China.
The availability of high-speed data
networks such as CDMA2000,
WCDMA, EDGE and the development
of the homegrown TD-SCDMA, will
give operators improved network efficiency,
higher capacity and the ability
to offer high-speed data services.
Some analysts estimated that wireless
data services in China will swell to
US$5.68 billion and the number of
users will reach 112.5
million by the end of
2005.
The wireless system
plays a significant role
in China where the
Internet has not been
widely popular. It also
provides open system
content providers with
an effective, attractive,
business model.
Availability of large
amounts of content
makes data communications
attractive to
subscribers and in
return, subscriber
demand stimulates
content providers to develop and supply
a wider variety of content.
This cycle generates positive prospects
for Chinas data market growth. The
growth of Chinas mobile data market,
though, will also depend upon the
widespread availability of suitable
equipment at affordable prices.
The implementation of EDGE technology
can be expected to play a significant
role in the migration of users
from voice-only communications to a
more complex mixture of voice, wireless
data, and multimedia services.
Operators in China hope that positive
user experience with the current 2.5G
(generation 2.5) services will translate
into the rapid adoption of 2.75G and
later 3G services.
However, 3Gs situation in China
remains unclear, since the government
has not yet decided what type
licences to issue, how many to issue--
and when.
The relatively conservative Chinese
wireless operators would prefer to
pace infrastructure rollout to accompany
the resolution of regulatory
requirements and technical issues and
as well, the availability of attractive,
affordable, handsets and relevant content.
Since many 3G features are not
yet in demand, it is likely to take several
years before 3G reaches high
growth levels.
Hong Kong and China—the
indispensable relationship
Figure 1: E-mail is the most used mobile data service in China.
Hong Kong, the natural gateway to
mainland China for more than a century
and the Asias telecom hub, has a
vibrant mobile market. Although
Hong Kongs economy is small, six
operators, with twelve mobile networks,
provide nearly ubiquitous coverage
within the territory. The penetration
rates are very high so there is a
large base of tech-savvy customers
prepared for new technologies.
However, the high penetration also
signals limited room for development
in voice service. The growth potential
of data services therefore gives operators
a way forward to grow revenues.
Although Hong Kongs wireless data
usage is still only at an early stage of
growth, 2.5G users grew from
730,000 at the start of 2004 to over
1.2 million by the end of September
2004. This was driven by the increasing
use of wireless both by corporate
and individual users.
“China, with its enormous
population, continues
to lead the world
in overall subscriber
growth and has the
highest potential for
future growth in the
world.”
The wide variety of devices, improved
device functionality and variety and
customer education all played key
roles in the wider acceptance of 2.5 G
by users.
Hong Kongs customers, although
very price conscious, are receptive to
innovations in design and content.
They are also knowledgeable and
demand high quality service. They
will not use a service twice that does
not meet their expectations.
Furthermore, they tend to invest in
new services only when
they see a tangible benefit,
so making things in Hong
Kong work technically and
commercially has always
been a challenge for equipment
vendors and operators
alike.
Content and applications
are important for the
growth of mobile data in
Hong Kong.
Only by delivering innovations
that cater to the users
interest and needs have
service providers, handset
vendors and content suppliers
been able to make Hong
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