Global GSM market likely to continue to gain ground with lower price until 2014, says Frost & Sullivan

Date: Mon, 10/19/2009 - 18:56 Source: Frost & Sullivan press department

Global GSM (Global System for Mobile Communications) shipment increased from 2,600,000 TRXs to 3,438,000 TRXs from 2004 to 2008. It is expected to continue to rise in the next 4-5 years, and the global GSM market is likely to continue to gain ground with lower price until 2014

Global GSM market likely to continue to gain ground with lower price until 2014, says Frost & Sullivan

With regard to the mobile subscriber base, global GSM accounts for 83.5 percent of global mobile subscribers, and this preponderant proportion has been stable for a long time. The scale economies effect of global GSM market is not likely to change until 2014. With the rich application of 3G, the share of GSM subscribers is likely to decrease to 56.4 percent by the end of 2013.
Emerging markets, such as China, India, and African countries, are likely to witness an incremental trend of capacity expansion of the GSM and EDGE (Enhanced Data Rate for GSM Evolution) applications. By the end of 2008, China had 641 million mobile subscribers and 47.3 percent of mobile penetration rate. With a population of 1.33 billion, the country's mobile market looks promising for the next 3 years.
With respect to data service, certain mobile entertainment services, such as mobile music, mobile games, and mobile TVs, are seeing increasing demand in China GSM market.
The Indian GSM market is witnessing a fierce competition in accordance with its rapid market growth. The internal drivers of the GSM market in India are its large population, open and fully competitive market, increasing mobile subscribers in rural areas, and rising mobile penetration. The mobile subscriber base in India is forecast to reach 493 million by the end of 2009 and 683 million by 2010.
Price of GSM device is likely to drop continually and professional maintenance services are expected to gain importance gradually. In particular, GSM carriers will emphasize on complete design ability and provision of customized maintenance services, especially for data business operations.
From 2004, ZTE Corporation (ZTE) has gradually become the mainstreaming equipment provider in the global GSM market due to its localized operation, customized invention, and strong cost competitiveness. It is forecasted that ZTE could take advantage of its advantages of innovation and services and become one of the top three global GSM equipment providers by the end of 2009.

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