Mobile multimedia set to surpass SMS in Asia-Pacific

Mon Nov 23 2009, 16:44 PM UTC

Revenues from mobile multimedia services in the Asia-Pacific region, such as ringtones, mobile apps, games and music, are expected to exceed text messaging revenues for the first time this year. A report from IDC says revenues from such services are expected to top USD16.3bn for 2009, accounting for 11% of all mobile revenues for the region, excluding Japan. 

In contrast, SMS revenues are beginning to plateau, and will reach USD14.5bn this year, or 10% of all mobile revenues. IDC says demand for multimedia services will accelerate in coming years due to the proliferation of more advanced mobile handsets. The firm predicts multimedia services will be worth around USD45bn in 2013, more than twice as much as SMS. 

IDC says that, as technology such as Wi-Fi and 3G becomes more commonplace in the region’s developed nations, competition between providers will begin to shift from service breadth and quality to price, eventually leading to price wars in some markets.

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