Page Impressions Ltd Blogcetera: Asia-Pac leads the way in 3G Dongle adoption

Monday, February 23, 2009

Asia-Pac leads the way in 3G Dongle adoption

Asia-Pacific was home to some 121 million 3G subscribers in 2007 and an estimated 158.4 million in 2008.  By 2013, the region's 3G subscriber base is forecast to reach 564 million, accounting for about 18.2 percent of all mobile users. With 3G subscriber net additions in record numbers year-on-year, mobile operators are eager to monetize 3G external broadband devices, namely dongles and data-cards, to complement their mobile broadband offerings.

3G dongle services have thus far seen promising uptake. Frost & Sullivan senior industry analyst Marc Einstein noted: "Dongles and data-cards are increasingly a preferred connectivity device of choice for Asia-Pac's broadband subscribers given the slim form-factor of the devices, faster 3G speeds and competitive service plans available."

He reckoned that by 2013, more than one in every three new broadband subscriber will use dongles or data-cards for their mobile broadband needs, giving fixed broadband players a run for their money.

New analysis from Frost & Sullivan, 3G External Broadband Devices in Asia-Pacific, finds that there were an estimated 5.2 million mobile broadband dongle and data-card users in Asia-Pacific (18 countries) in 2008, with corresponding billings of over $1.3 billion.

With the continuous rollout of new 3G networks and 3.5G/4G upgrades across the region, Frost & Sullivan believes that there will be nearly 37 million 3G subscribers using external wireless devices for their mobile broadband needs by year end-2013, with estimated billable revenues of $7.8 billion.

The uptake for these 3G devices is expected to accelerate after 2010 once 3G services become commercially available in most large Asian markets. Not surprisingly, China is expected to be the single largest market for the device with 20 percent (7.4 million) of the region's dongle/datacard users by 2013; India, a close enough second with 5.55 million (15 percent) dongle/datacard subscribers.

The switch to dongles for broadband access is hardly surprising given the difficultly that some Asian economies have had rolling out fixed infrastructure.  The dongle approach enables users to leap frog into the 21st Century and get a excellent broadband access via the mobile networks.  It will be interesting to see how tariffing emerges in the Asia compared to what we are seeing across Europe and most notable in the UK.

More information from Frost & Sullivan

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