Handset shipments in the Asia-Pacific region are expected to rise from 162.3 million last year to 296.2 million in 2005, according to the Yankee Group.
At the same time, subscribers are forecast to shift from basic GSM (Global System for Mobile) models to W-CDMA (wideband-code division multiple access) networks.
The research firm expects the number of handset subscribers to grow from about 333 million at the end of last year to about 620 million in 2005.
'At 41 per cent growth year on year, the region is increasingly representing the stabilising factor in global handset projections, considering the overwhelming supply delays, general operator pessimism and slow demand for new high-functionality handsets,' analyst Shiv Putcha said.
He believed GSM would lose its dominance over W-CDMA and GPRS (general packet radio service) technology. The number of GSM subscribers would drop from just under 200 million last year to 175.9 million by 2005, while the number of W-CDMA and GPRS subscribers would rise to 176 million and 105 million respectively.
'Subscribers of new GPRS and W-CDMA service launches will increasingly steal market share from basic GSM,' Mr Putcha said.