Download Smartphone? Not So Fast In Asia

Like the telecom equipment manufacturers push to sell and promote their next-generation wireless technology, one question remains unanswered: to build capacity in a time when too much demand there? Companies such as Huawei, ZTE and Alcatel Lucent is aggressively promoting their goods at trade fairs Mobile Asia Congress in Hong Kong last week, touting a speed of about 50 times faster than current 3G networks.

Research firm Wireless Intelligence estimates the value of LTE in Asia for a total of 120 million users by 2015 from almost zero now, China accounts for half of that number. LTE market should hold 6 billion U.S. dollars in 2014, industry research firm Dell Oro, said that the sector of profitable growth for manufacturers of telecommunications equipment such as Huawei, Motorola Inc. and Nokia Siemens Networks.

"In Asia, I do not see that there is a strong demand for data services upscale outside Japan, Singapore, Korea and Hong Kong," Chai said Wilson, an analyst at Mirae Asset Management. "It is not an ecosystem of cheap smart phones, many software and a cheap data plan in countries such as China to grow the demand there.

" Opportunity for small PLAYERS lack of smartphones and software will also inhibit the growth of LTE, and the use of 3G networks that really took off after the launch of Apple's iPhone and Blackberry from Research in Motion. Apple's usual reluctance to move to a new technology can also keep 4G have widespread use among its users.

IPhone alone accounts for nearly one fifth of all smartphones, according to research firm IDC.This is an opportunity for smaller players smartphones such as HTC and Samsung Electronics of South Korea to catch up with the likes of Nokia smartphone space with higher profit margins. "HTC is really the market leader in 4G technology as well," said RBS analyst Steven Tseng.

"Their comparisons with companies like Verizon means that other operators are more likely to approach them when they want to start their own 4G service." HTC shares have risen about 150 percent so far this year, well above a apartment benchmark TAIEX and above the average target price of T $ 830 set by analysts surveyed by Thomson Reuters I / B / E / S.

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