At a CAGR of 1.4% by 2026.
Fixed communication service revenue in South Korea is expected to decline from $6.5 billion in 2021 to $6.1 billion in 2026 at a compound annual growth rate (CAGR) of 1.4%, according to GlobalData. The leading data and analytics company notes that this decrease is mainly due to the continued decline in voice subscriptions and slowing growth in fixed broadband subscriptions.
GlobalData’s ‘South Korea Fixed Communication Forecast (Q1 2022)’ reveals that fixed voice service revenues will decline at a CAGR of 3.1% due to a steady drop in both circuit switched and packet switched subscriptions and a decline in voice telephony average revenue per user (ARPU).
Fixed broadband service revenue will also decline over the forecast period at a CAGR of 0.7% due to subscription losses in cable and digital-subscriber-line (DSL) segments and a decline in fixed broadband ARPU. Discounted bundled plans offered by operators will also hurt fixed broadband ARPU and revenue over the forecast period.
Pradeepthi Kantipudi, Telecom Analyst at GlobalData, comments: “Fiber broadband will be the only fixed broadband service category that will see an increase in subscriptions and will remain the leading broadband technology by subscription share throughout the forecast period. Growth will be driven by strong demand for high-speed broadband connectivity and the expansion of fixed broadband networks in the country. Operators such as LG U+ and KT are continuing to invest in fixed broadband network expansion and modernization in the country.
“KT will lead both fixed voice and fixed broadband segments by subscriber share throughout 2026. The company’s leading position in the fixed broadband segment is supported by its strong presence in both the DSL and FTTH segments. The operator is also promoting discounts on its broadband plans to add new subscriptions.”