The wireless services market in China continues to grow rapidly, reports In-Stat/MDR. The high-tech market research firm expects that China's mobile market will grow from 206.75 million subscribers in 2002 to 402.28 million subscribers by 2007, a compound annual growth rate (CAGR) of 10.5% for the forecast period.

Over the next five years, China's wireless services market will see a dramatic development and transformation with the move from today's voice-centric, price competitive model to one characterized by a more complex mixture of voice, wireless data and multimedia services.

In-Stat/MDR has also found that:

– The availability of next-generation networks such as cdma2000, WCDMA, and TD-SCDMA will give operators improved network efficiency, higher capacity, and the ability to begin offering high-speed wireless data services.

– At the high end of the market, these data services will provide operators with the opportunity to diversify revenue streams from corporate customers. At the low end of the market, improved network efficiency and capacity will drive operators to continue to target and grab the all-important first-time subscribers. The result will be massive growth in the number of mobile subscribers.

– During the forecast period, 2G subscribers will still represent the majority of the market, but 2.5G and 3G subscribers, mostly driven by increasing corporate wireless implementations and improved device functionality, will grow too. The 2.5/3G market will be dominated by high-end subscribers, as an increasing number of customers connect to corporate networks and usage levels continue to approach levels seen in the mobile office paradigm.

– For operators to be successful in the 2.5 and 3G wireless services market, they will need to develop new channels and partners to sell their services, including (but not limited to) more robust enterprise sales forces and IT equipment provider partnerships.