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Mobile leaders buy into new applications

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Jonathan Hopfner

The better part of the world may trail Asia-Pacific when it comes to the adoption of most 3G services, but even this region has its mobile pioneers - South Korea and Japan.

Telecoms consultancy Analysys said both countries boast 3G service penetration rates of more than 40 per cent, more than twice those seen in Europe, and have 'consistently led the world' in the development of innovative mobile technology.

In addition, despite the best intentions of mobile operators, average revenue per user (arpu) - a key gauge of industry performance - for data services remains almost universally dominated by SMS. Only in Japan and South Korea have operators managed to generate 'a significant proportion' of total revenue from data services other than text messaging, Analysys said.

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They're also the nations to beat when it comes to 'contactless' handset payment systems, which allow consumers to purchase goods or services simply by waving their phone over scanners.

So what makes the East Asian neighbours so mobile trigger-happy? Analysts and industry representatives ascribe the success of high-end handset applications in South Korea and Japan to a combination of factors that could be difficult to replicate in other markets.

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Stefan Rust of the Mobile Entertainment Forum Asia said most residents of both countries lived in densely populated 'commuter environments'. They may spend hours shuttling to and from the office, creating a relatively receptive audience for mobile TV and internet services that no doubt provided a welcome distraction.

The less than spacious apartments that many people in Seoul and Tokyo call home don't leave much room for bulky computers either, resulting in lower PC penetration rates, and encouraging people to use their phones for computer-like functions.

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