Data connectivity or mobile broadband revenue in Asia Pacific except Japan (APeJ) will grow at a CAGR of 19.3% from 2012 to 2017, according to a new report by IDC.

However, the growth rate for voice services revenue in APeJ will slow down and achieve a compound annual growth rate (CAGR) of 2.5%.

Many mobile operators want a share of the lucrative mobile services market in APeJ region but are finding it difficult to maintain growth in revenue especially voice services revenue.

Growth of data revenue in this region will grow due to smartphones penetration with affordable prices and rollout of 3G and LTE licenses. Data revenue will also grow due to mobile user behaviour towards 'Over-The-Top-Players' (OTTP) services.

"Growth pace for data connectivity in 2014 will continue to be strong and we expect the market to reach US$141.2 billion by 2017," said Ashadi Cahyadi, senior research manager at IDC Asia/Pacific Telecommunication Group. "LTE subs will hold the highest five-year CAGR of 44.3% compared to other mobile technology, and Singapore will lead the growth in the region and achieve a CAGR of 103% in 2017."

Mobile services market

The total mobile services market revenue in APeJ will reach US$271.4 billion by 2014.

While China and India will continue to make up the largest shares in the market, Indonesia, Thailand and Philippines have been identified as the top three countries leading the revenue growth in 2014.

Cahyadi advises operators to have better understanding on what customer wants and their behaviours in terms of data usage and not fall into the trap of unlimited broadband plans.

Deployment of 3G and 4G infrastructure will have an impact on traditional messaging services, like SMS and MMS.

The revenue of SMS and MMS is said to decline at a CAGR of around -7% in 2017, from US$27.8 billion in 2012 to US$19.5 billion in 2017.