MOBILE BUSINESS - THE NEXT BIG THING

Mobile communications is one of the most promising markets today. The number of people using mobile phones around the world was expected to top the one billion mark by the end of 2003. Wherever one looks these days, it is the mobile devices that have turned mobile communications into a mass market. In fact, at some point soon, the number of mobile phones in use will overtake the number of fixed network phones or PCs. (Source: IDC)

-484 million people will be accessing the Internet with mobile devices by 2005 (Source: Ovum Inc.)
-Companies will increase the number of workers allowed remote connectivity by about 30%, spending approximately US$10,000 per mobile user (Source: Infometric Research)
-Total m-commerce spending will amount to US$200 billion by 2005 (Source: Donaldson, Lufkin and Jenrette)

Overview Of Malaysia's Mobile Industry
Mobile data is one of the fastest growing segments in the communications sector. The participation of media companies as content providers will contribute positively towards the development of Malaysia's communications and multimedia industry.

In Malaysia, mobile messaging - predominantly short messaging service (SMS) - is apparently paving the way for other data applications. Last year, mobile messaging alone constituted about 9.9% of the total mobile application revenue, or US$239.9 million (RM911.6 million) of the total amount of US$2.41 billion (RM8.13 billion). The second largest revenue contribution from data services is believed to be the mobile information and entertainment application segment, which includes applications such as contests,as well as icon, graphic and ring tone downloads.

Mobile Phone Subscribers In Malaysia
Source : Malaysian Communications and Multimedia Commission
The number of mobile subscribers in the country has increased from almost 1.8 million users in the year 2002 to 7.48 million, while the penetration rate of cellular phones has increased from 31.1% in the year 2001 to 37.3% this year.

Mobile Phone Users The total number of mobile phone users was expected to increase by some 18% in 2003, followed by an additional 12% this year. Source : Malaysian Communications and Multimedia Commission

Malaysia's SMS Scenario
Source: Malaysian Communications and Multimedia Commission
The SMS rage has led to a growing number of mobile phone users in Malaysia, particularly young people who simply love keeping up with the latest trends and seeking out novelties. SMS alone raked in an estimated revenue of RM300 million for local telecommunications companies. It was found that almost 2 million SMSs were sent in the year 2002. The figure noted an incredible climb as it was estimated that 439 million SMSs were sent in January 2003.

Telco	SMS Sent	Remarks
	80 Million	As at December2001
	30 Million	-
	70 Million	As at June 2002
	15 Million	As at June 2002
	165 Million	As at July 2002
Source: AC Nelson

Growth Potential
With more than 10 million subscribers in Malaysia, mobile communications has highly exceeded Internet penetration. Seventy percent of the mobile phone users in Malaysia are between 16-35 years old, living in urban areas and earning above RM1,500 per month, making them the prime target of the market.

Intensified market competition squeezes profitability of this industry. Thus, there is a need for telecommunications players to think of new ways in order to stay competitive. Mobile entertainment and SMStv are still relatively new concepts in Malaysia, as service providers are still tapping into this frontier to offer entertainment using wireless technology such as ringing tones and picture messages.