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Strong mobile usage growth forecast in BRIC markets

Strong mobile usage growth forecast in BRIC markets

The increasing availability of broadband-enabled mobile networks will underpin continued strong growth in mobile phone usage in Brazil, Russia, India and China, according to a report published by Juniper Research.

Mobile phone usage in the BRIC markets will grow from 1.21 billion in 2008 to 1.64 billion by 2013, said Juniper.

The report also found that revenues from mobile data services will rise from $26 billion in 2008 to $48 billion by 2013, with China accounting for the majority of such revenues.

Total operator-billed voice revenues for the region will peak in 2010 at $117.1 billion and will decline thereafter, with the key change in the next five years being the launch of commercial 3G services, particularly in India and China.

Report author Andrew Kitson said: “Despite rising revenue levels, spurred by increasing service usage, some publicly-listed operators may find it difficult in the short term to maintain investment plans for new network build-out and enhancement projects, due to the limited capital-raising opportunities at this time.

“Similarly, government-owned utilities may also find finances to be in short supply. Further, debt repayment burdens may weigh heavily on all manner of operators that have achieved growth through heavy borrowing.”

Recent research from Informa Telecoms & Media revealed that annual revenues from the global mobile market will top $1.03 trillion by 2013, when the number of subscriptions worldwide will have risen to more than 5.3 billion (see Global mobile revenues to top $1 trillion by 2013)

From end-2007 to end-2013, the global mobile market will see huge growth, increasing in size by over half (56%), according to the latest edition of Informa’s Global Mobile Forecasts to 2013.

Mobile advertising, meanwhile, is set to become a mainstay of UK marketing plans over the next two years despite a current disconnect between usage and understanding of the medium, according to recent research from the IAB.

The IAB’s Mobile Council surveyed 115 agencies, media planners, creatives and advertisers and found that 62% of respondents foresee mobile spend will grow over the next two years, with the medium becoming a standard feature of budgets by 2010 (see Mobile Advertising To Become UK Marketing Mainstay).

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