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Wednesday, June 19, 2024

Telecom and Pay-TV Services Revenue in Japan to Surpass $130 Billion

The total telecom and pay-TV services revenue in Japan is expected to grow at a compound annual growth rate (CAGR) of 4.7 percent over the forecast period 2022-2027, mainly supported by the mobile data and fixed broadband service segments, according to GlobalData, a leading data and analytics company.

GlobalData’s Japan Telecom Operators Country Intelligence Report states that the mobile voice service revenue will decline over the forecast period in line with the steady decline in mobile voice service ARPU, with users increasingly shifting to OTT communication platforms and operators too offering free voice minutes as a part of their mobile plans.

Mobile data service revenue, on the other hand, will continue to increase, driven by the continued growth in smartphone and M2M/IoT subscriptions, and an increase in the adoption of relatively high ARPU-yielding 5G services.

Sarwat Zeeshan, Telecom Analyst at GlobalData, says: “4G services accounted for a majority share of the overall mobile subscriptions in 2022 in Japan. 5G subscriptions, however, will increase at a rapid pace and surpass 4G’s share of subscriptions in 2025, driven by  the rising demand and growing availability of 5G services with operators expanding their 5G networks across the country. For example, in March 2022, NTT Docomo planned to expand its 5G coverage to 1,741 municipalities, reaching at least 90 percent of the population coverage by March 2024.”

In the fixed communication services segment, fixed broadband service revenue will grow at a CAGR of 4.5 percent over 2022 2027 period, supported by the steady growth in fibre-optic subscriptions, on the back of the rising demand for higher speed broadband connectivity and the government’s focus on fibre-optic network expansion. Fixed voice services, on the other hand, will continue to weaken given the steady decline in circuit-switched subscriptions.

Growing demand for high-speed broadband connectivity, government’s focus on fibre-optic network expansion in the country, and the gradual phasing out of DSL services will support growth in fibre broadband subscriptions over the forecast period. Japan has set a target to expand fibre-optic networks to 99.9 percent of households by the end of March 2028.”

Zeeshan concludes: “NTT Docomo topped mobile, fixed voice, and fixed broadband service segments, in terms of subscriptions in 2022. While the ongoing expansion of  the 5G network and focus on M2M/IoT offerings will help the operator maintain its leadership in the mobile services segment, in the fixed broadband segment, its focus on offering different tariff plans based on data usage will attract customers from basic level of usage to premium usage.”


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