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Market Research

January 29, 2004
MMS users in APAC to grow by 50 percent in 2004

SINGAPORE -- According to IDC's recent research, MMS users in the Asia Pacific region will grow by over 50 percent in 2004. Yet, MMS users will represent only 2.3 percent of total wireless subscribers by the end of 2003, and 4.3 percent by the end of 2004.

So far, the usage of MMS has been largely confined to user-created content such as digital images taken on camera-enabled handsets. This spur of the moment picture capture will represent the bulk of the initial MMS uptake. While the greater number of in-built camera handsets that were introduced to the market have promoted greater MMS usage, current pricing schemes are a major deterrent that are preventing consumers from turning it into a habitual behavior similar to SMS.



Countries that witnessed a significant increase in MMS users in 2003 include Singapore, Australia, Hong Kong and Taiwan. As a proportion of total wireless subscribers, these countries will continue to lead in the adoption of wireless technology due to early progress made in terms of operator interconnectivity and their higher penetration of in-built camera phones. However, developing countries in the region are likely to observe a gradual rise in MMS users in the short-term forecast period due to the high prices of devices and MMS services at the moment, which mainstream subscribers consider too expensive.

Davina Yeo, associate director, wireless research, IDC Asia Pacific, said: "While the number of MMS users continues to expand each quarter, it will take another two years for MMS technology to gain mass appeal. Short-term obstacles such as interoperability and roaming capabilities are hampering the functionalities of MMS applications. User perception, adoption of in-built camera handsets and comfortable price-points will also be key to the success of MMS. The presence of more third-party content that extends beyond picture taking via the mobile device in the longer term will further enhance the opportunity for MMS. However, even with the increasing use of MMS, the mass appeal and popularity of SMS services is unlikely to diminish, instead, this will likely expand the revenue generating opportunities for mobile operators."

Contact:
IDC

Tel: +65-6228-7769
www.idc.com






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