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APAC mobile Internet market gains from 3G/LTE

Posted: 15 Nov 2011 ?? ?Print Version ?Bookmark and Share

Keywords:APAC market? mobile Internet? infrastructure revenue?

According to Synergy Research, mobile Internet infrastructure revenues have exceeded $400 million in APAC at 2Q11, growing at 30 percent per year. The market research firm added that this has allowed networking equipment to become one of the fastest growing technology markets to support mobile Internet access.

The market segment that includes mobile multimedia gateways and specialized routing and switching equipment is being driven by the explosion of smartphones and tablets, and the ever-increasing levels of data and video traffic generated by applications on those devices, mainly supported by 3G and 4G/LTE networks.

The number of 3G subscribers in the APAC region reached 381 million in mid-2011, having grown by 51 percent since last year, Synergy Research noted. Japan and China account for more than half of the region's 3G subscribers, but the big growth numbers are coming from China, assisted by India and Indonesia. Meanwhile, investment in mobile Internet infrastructure is also being driven by the build out of LTE networks, the firm observed.

While it is still early days for LTE and subscriber numbers remain small, LTE networks are now live in six APAC countries, with Hong Kong, Japan and Uzbekistan leading the charge, followed by the Philippines, Singapore and South Korea, Synergy Research added.

Cisco and Huawei are the market leaders in mobile Internet infrastructure, but they are not having it all of their own way. They accounted for only 41 percent of the APAC market in Q2, with Nokia Siemens Networks, Ericsson, ZTE, Juniper and Alcatel-Lucent leading the chasing pack, Synergy Research indicated. Cisco has gained market share in the past four quarters, as well as Nokia Siemens Networks and Ericsson.

"With the number of 3G/LTE subscribers in the APAC region forecast to triple within the next four years, this will be a tremendously exciting time for vendors," said Jeremy Duke, Synergy Research's president. "While smartphones and tablets tend to grab more media attention, there have to be some powerful networks to support all of those burgeoning devices and applications, and we are anticipating strong growth opportunities for infrastructure vendors in all countries across the region."

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