A NEW study shows that the mobile online gaming community in Singapore numbers 1.1 million people.

The number is expected to grow to 1.4 million by the end of this year, says IT research agency IDC. The market is expected to grow at a compound annual rate of 16.4 per cent till 2012.

Speaking to BizIT, Poon Wei Ang, market analyst of IDC's Asia-Pacific Software Research, noted that the higher bandwidth available via third generation mobile telephony services (3G) in Singapore is expected to give a fillip to mobile online gaming.

'The higher bandwidth would allow for the development of multimedia rich content, which can increase usage,' Mr Ang explained.

He pointed out that within the region, China had the highest number of mobile gamers, followed by Korea while Singapore came in at the bottom. 'While Singapore has the necessary technology and network infrastructure, mobile gaming has yet to take off as most users who are on the go opt for hand-held consoles, which are connected online, in order to experience rich gaming content.'

Mr Ang clarified that the study did not cover online gaming where players connect via Wi-Fi networks. He added that IDC believes that the evolution of online gaming as a whole (on all devices and especially on the PC) and the support from the Singapore government will create a conducive environment for local game developers. 'There is an opportunity for local talents as Singapore aims to be the gaming hub of the region with the help of the government and gaming bodies,' he said.

Mr Ang, however, pointed out that locally developed content from Singapore is still at a nascent stage.

To a question on who makes the most money from mobile gaming, Mr Ang replied that it's the game publishers who make money directly from the games while telcos usually earn from data transfer charges. 'There are packages that are offered through telcos that allow the user to download games for a subscription fee. However, users will still be charged for data transfers.'

The IDC study covered the Asia-Pacific, excluding Japan (APEJ) region. Mr Ang said that the gaming market in APEJ grew by 35 per cent in 2007, year-on-year.

'This was oneper cent lower than IDC's previous forecast, as growth in Hong Kong, China and Malaysia came in softer than expected,' the analyst noted.

According to Mr Ang, IDC expects the APEJ region's mobile online gaming market to continue to grow and achieve a CAGR (compound annual growth rate) of 19.9 per cent over the next five years. 'However, the development of mobile online gaming in the region will remain fragmented as rich multimedia content relies a lot on the mobile infrastructure of the country.'

Explaining this point, he added that even though many users have begun to use their handsets for rich multimedia and gaming experience, the acceptance and availability of 3G and 3.5G in certain countries across the region has yet to take off. 'While China and India continue to work on the provision of 3G services, the mature markets will be focusing on the available 3G services to churn out multimedia-rich content.'

Looking ahead, content developers and operators in the region will likely face challenges in most countries in the region as mobile online gaming is still in its early stages. 'Nevertheless, as the mobile network coverage and the ability of high speed data connection for mobile phones begin to stabilise, and more mobile content becomes available, IDC expects to see a steady growth of mobile online gamers in Hong Kong, Malaysia, and Singapore by 2012,' Mr Ang added.

This story was first published in The Business Times on 15 October 2008.