Communication service revenue in China to drop

ARPU levels will drop considerably over the forecast period.

The total fixed communications services revenue in China is expected to decline at a compounded annual growth rate (CAGR) of 0.9 per cent from $US250bn in 2021 to $US239bn in 2026 due to drop in average revenue per user (ARPU) levels, according to GlobalData, a leading data and analytics company.

GlobalData’s China Fixed Communication Forecast reveals that fixed voice and fixed broadband service lines will expand at a CAGR of 4.5 per cent and 1.6 per cent, respectively, over the forecast period.

However, both voice telephony and broadband ARPU levels will drop considerably over the forecast period thereby dragging overall revenue growth in the market. For Instance, fixed voice and broadband ARPU levels in the residential segment are expected to decline from $US7.08 to $US5.05, and $US33.69 to $US27.94 between 2021 and 2026.

Pradeepthi Kantipudi, Telecom Analyst at GlobalData, says: “Fiber will remain the leading broadband technology in terms of subscriptions through the forecast period driven by the government’s plans to expand fibre-optic network infrastructure in the country.”

For instance, the implementation of Dual Gigabit Network Coordinated Development Action Plan (2021-2023) is aimed to improve broadband connectivity and expand fibre-optic networks in the country.

Kantipudi concludes: “China Mobile will lead the fixed broadband services market in 2021, by subscription share, followed by China Telecom and China Unicom. China Mobile will maintain its leadership in the market through 2026 driven by its strong position in the fibre-to-the-home (FTTH) segment and various promotional discount offers on its broadband and multi-play plans.”



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