World VoIP NewsChinas wireless service market to nearly double by 2013Chinas wireless service market to nearly double by 2013

Chinas wireless service market to nearly double by 2013

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The release of 3G licenses in China is spurring a wireless data boom, with national revenue from such services rising by 18.9 percent in 2009 and nearly doubling from 2008 to 2013, according to iSuppli Corp.
As the one-year anniversary of the issuance of 3G licenses in China approaches, wireless data revenue, including both messaging and non-messaging service, is set to rise to $19.3 billion in 2009, up from $16.3 billion in 2008. By 2013, data revenue will surge to $31.5 billion, increasing at a Compound Annual Growth Rate (CAGR) of 14.1 percent from $16.3 billion in 2008.

Non-messaging revenue soon will exceed messaging revenue as carriers expand mainstream adoption of 3G services. Non messaging service revenue will reach $20 billion in 2013, up by a factor of three from $6.8 billion in 2008.

The below figure presents iSuppli's forecast of China's wireless data revenue broken down by messaging and non-messaging services.

"The rapid growth of China's data services is being enabled by the monumental spending of the nation's wireless carriers on mobile infrastructure equipment," said Will Kong, an analyst covering China research at iSuppli. "The carriers this year will spend about $6.3 billion on mobile infrastructure equipment, up 28 percent from 2008. This will represent a near-term peak, with spending in 2010 declining by 2.4 percent to $6.1 billion. During the next five years, carrier spending will continue to decline but will remain at a high level of more than $5.5 billion annually."

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