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Recent research by Gartner indicates that the number of cellular connections in Asia Pacific would increase to 797.8 million by 2007 while cellular services revenue would touch $142.9 billion. Mobile data revenue constituted 12.1 percent of total cellular services revenue in 2002 (up from 8.8 percent in 2001). In 2007, mobile data is expected to contribute 26.6 percent of total services revenue. Prepaid connections constituted 76.0 percent of net new cellular co nnections in 2002 and in 2002 made up 43.4 percent of total cellular connections (up from 32.9 percent in 2001). It is expected to constitute 65.8 percent of total cellular connections by 2007. In 2002, China was home to 47.7 percent of Asia Pacific"s total cellular connections and the figure is expected to rise to 52 percent in 2007.
According to Kobita Desai, principal analyst, Gartner India, "The growth in the Indian cellular market continues on an upswing as the cost of service and entry barriers go down. The market is projected to grow at a CAGR of 39 percent to notch up a base of 70 million subscribers by 2007. Prepaid establishes significant traction and remains the core acquisition tool amongst all operators."
According to Foong King Yew, principal analyst for cellular communications, "Net new cellular connections in Asia Pacific peaked in 2002 and the growth rate will continue to decline. This is particularly apparent in markets such as Singapore, Japan, South Korea, Hong Kong, and Taiwan". He observed, "Cellular operators in these markets will be compelled to seek out new revenue streams. These mature markets do offer good prospects for mobile data. Mobile data contribution to cellular services revenue in these markets is all projected to exceed 26 percent by 2007.”
He predicted, "Newer handset models with enhanced features (e.g., color screen, MMS, embedded camera, location tracking technology, and Java support), the introduction of faster cellular networks (e.g., EDGE, W-CDMA, and CDMA2000 1X EV-DO), and new applications will lay the foundation for the uptake of mobile data