Emerging APAC online consumers spend 48% more time using telecoms and media services than European and US consumers, Analysys Mason reports

LONDON, UK, 20 July 2012 – ‘Connected’ consumers in emerging Asia–Pacific (APAC) spend 48% more time using telecoms and media services than those in Europe and the USA, according to a new report from Analysys Mason (www.analysysmason.com). On average, survey respondents with Internet connectivity in major emerging APAC markets spent 13.0 hours per day using telecoms and media services, compared with just 8.8 hours for connected consumers in Europe and the USA.

The Analysys Mason research report, The Connected Consumer Survey 2012: Asia–Pacific, is based on an online survey of almost 4000 consumers aged 18 and over in China, India, Indonesia and Malaysia. All survey participants were ‘connected’ – that is, they had Internet connectivity (at home, work or via an Internet café or kiosk) – and lived in an urban or suburban area. As such, the survey sample reflected a relatively affluent segment of the population.

On average, connected consumers’ total exposure to telecoms and media was highest in Malaysia (14.6 hours each day), followed by Indonesia (14.2), India (13.3) and China (9.9).

Of particular concern to operators, the report also found that over-the-top (OTT) services have high penetration rates in these markets: 44% of surveyed consumers in Malaysia, for example, use VoIP services, as do 38% of respondents in India. Skype retains a clear market lead for VoIP services in the region, accounting for 69% of VoIP users in our survey.

“Operators in emerging APAC need to develop a clear strategy to address the growing use of both fixed and mobile VoIP as well as other OTT communications services,” explained Alexandra Rehak, co-author of the report and lead analyst for Analysys Mason’s Asia–Pacific research programme. “Possible approaches include offering their own OTT communications services, partnering with major international or local OTT players to develop joint approaches to the market, or recalibrating the position or pricing of data within contract bundles and the larger prepaid market.”

The report also found that usage of mobile content and apps was high among connected consumers, although take-up varied from country to country. In China and Indonesia, 78% and 79% of consumers, respectively, used such services, compared with 64% in India.

“We also found that consumers under the age of 35 are more likely to use mobile content and apps than those aged 35 or over,” explained Helen Karapandžić, lead author of the report. “There is a clear opportunity to provide more mobile apps and services targeted towards older users.”

The report indicates that the region’s smartphone adoption rates are increasing rapidly, largely driven by availability of low-cost Android devices. More than 56% of survey respondents used a smartphone, and 89% of respondents with basic handsets were considering upgrading to either a feature phone or smartphone for their next handset purchase.

“Feature phones are taking on many of the functions of smartphones in these markets, and offering many subscribers a mobile data and Internet experience at a significantly lower entry price,” explained Karapandžić. “The rapid adoption of smartphones and feature phones is exerting increasing pressure on already-congested networks in emerging APAC markets.”

Other headline facts covered in the report include:

  • The majority (68%) of our respondents claimed to regularly use mobile application stores. China had the highest level of usage (74%), compared with a low of 59% in India.
  • Tablet users in the region are doing far more than just browsing: 63% of tablet owners report streaming video content to their device.
  • Subscribers to mobile broadband services (that is, USB modem, mid-screen and large-screen services) show relatively low levels of loyalty and customer satisfaction. Almost half (49%) of mobile broadband users in our survey wanted to change service provider in the next six months – twice as many as fixed broadband subscribers.
  • About 11% of respondents that take both fixed and mobile broadband services are planning to give up their fixed line, while almost 13% of respondents that have only mobile broadband are considering also taking up fixed broadband.

The Connected Consumer Survey 2012: Asia–Pacific is available for USD4999 or as part of a subscription to Analysys Mason’s Asia–Pacific research programme. For more information, contact us at research@analysysmason.com.

Link to press release online: http://www.analysysmason.com/About-Us/News/Press-releases1/APAC-consumers-PR-Jul2012/