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February 11, 2010

Mobile sector to comprise 62% of total telecom market in 2010, says IDC

Android, smartphones, mobile broadband and M2M devices to drive the market

By CBR Staff Writer

Mobile sector is currently a $850bn global market, accounting for 57% of the global telecom market, according to a new report by research and advisory firm IDC.

The firm said the mobile sector is the fastest growing segment and will comprise 62% of the total telecom market in 2010, driven by subscriber growth with over 1.3 billion subscribers to be added by 2013, as well as several exciting trends and developments including expanding demographic of smart devices, the growth of mobile broadband and access to a new array of applications.

The firm predicts four major trends that will shape the mobile industry. First, the firm said that the price compression, and the slowdown of revenue growth for mobile voice, highlights the importance of mobile data, mobile broadband, and the importance of applications for both operators and device manufacturers.

According to the study, smartphones have emerged as the key driver of the global mobile market with 15% of all devices shipped, while emergence of connected devices, such as embedded laptops and a plethora of industrial/machine to machine (M2M) devices will be another key driver.

In addition, the study also found that the mobile broadband will continue to be the focus for 2010. The newcomers touting open standards (Android) and intuitive design and navigation (Mac OS X and webOS) have garnered strong end-user and handset vendor interest, the firm said.

Courtney Munroe, group vice president of Worldwide Telecommunications at IDC, said: The mobile sector is in transition from its prior focus on subscriber growth. The expanding demographics of smartphones and new operating systems, the arrival of mobile broadband, and the explosive growth of applications and content are combining to reshape the landscape of mobile telecommunications.

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