Revenues from the global mobile market are expected to reach about US$ 1.1019 Trillion with around 4.99 Billion mobile connections by 2012, forecasts Ovum.

According to Ovum, an analyst and consulting firm, the revenues from the cell phone market are projected to reach about US$ 1.019 Trillion with nearly 4.99 Billion connections by 2012, indicating the rapid transitions taking place in the wireless market worldwide, as reported by DIGITIMES.

Rapid growth in the two countries of the Asia-Pacific region, India and China is identified as a significant reason behind the growth in global mobile industry. Ovum revealed that with about 31% of total cell phone connections, India and China are going to be the largest mobile markets in the world by 2012. With rapidly increasing population, rising consumer spending power and low penetration rate of cell phones, the penetration rate in India, China and Indonesia are expected to reach 55%, 64% and 67%, whereas the penetration rate in Australia is likely to close at 122% by 2012.

Furthermore, several emerging markets are considered as major drivers of revenue for cell phone companies. Also, the Asia-Pacific region is likely to record strong and continuous growth in the mobile market till 2012 due to the rapid and strong economic growth taking place in countries like Indonesia.

However, an Average Revenue per User (ARPU) comparison shows the threat for the cellular operators in these emerging markets. Senior Analyst at Ovum, Steven Hartley, said “In spite of about 37% of mobile connections in the world by 2012, China and India are expected to account only 18% of total revenues of global mobile industry”, as reported on May 26, 2008 by Techon.

A Senior Research Analyst at RNCOS adds, “The mobile operators of both Indian as well as Chinese markets need to be more efficient in providing absolute margins to justify the expenditure incurred in building and maintaining cell phone networks. However, the mobile operators belonging to these two developing regions are likely to play an important role in the global mobile market as with the help of their sheer range, they are able to enter the new emerging markets.”

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