Fixed communications service revenue in APAC to reach $406 billion by 2026, as per GlobalData’s latest forecasts

Hyderabad: The Fixed communications service revenue will continue to rise and dominate the APAC region with the growing adoption of fixed broadband services in the emerging markets of APAC.

Fixed communications service revenue in APAC to reach $406 billion by 2026, at a compound annual growth rate (CAGR) of 1.7%, according to GlobalData’s latest forecasts.

The growth and adoption of fixed broadband services, particularly in the emerging markets of APAC remains the driving force behind the surge in fixed communications service revenue.

In terms of fixed broadband adoption in APAC, it’s moderately developed. By the end of 2021, its fixed broadband account penetration of the population reached 18% as per the analysis of GlobalData’s APAC Fixed Communications Forecast Pack.

By 2026, the fixed broadband account penetration in APAC will be around 21%, mainly driven by the ongoing broadband network expansions and service adoption in emerging countries like India, Indonesia, the Philippines, and Thailand, where governments are infusing investments in fixed broadband network infrastructure development plans.

“The growth in the APAC fixed broadband market will be led by the fibre broadband segment, which will see continued growth in the region,” said Kantipudi Pradeepthi, Telecom Analyst – GlobalData.

“Fibre-optic access lines will account for 61% of the total fixed access lines in the developed APAC region by 2026 against a relatively higher 80% share in the emerging APAC markets,” added Pradeepthi.

High-speed internet services, broadband plans

Rising demand for high-speed internet services and competitively priced fibre broadband plans from operators with benefits like unlimited internet and access to major SVoD platforms will drive fibre broadband service adoption in the region.

India

In India, for instance, state-owned telco BSNL’s Superstar Premium Plans include unlimited 150 Mbps broadband service for INR999 (US$13) per month with access to OTT platforms like Disney + Hot Star Premium, SonyLIV Premium and VooT Select.

China

China leads the overall APAC fixed broadband services market, with 98% of its broadband subscriptions on fibre optic lines by the end of 2021. The government’s Dual Gigabit Network Coordinated Development Action Plan (2021-2023) aims to expand fibre-optic networks to over 200 million households by the end of 2023.

Singapore

Similarly, FTTH/B will account for almost 100% of the broadband lines in Singapore by 2026. NetLink NBN Trust‘s aggressive approach and investments are enabling fibre broadband network expansions.

Voice telephony and VoIP in APAC

Voice telephony penetration of the population in APAC will remain stagnant at around 10% throughout the forecast period. While circuit-switched telephony lines will decline at a CAGR of -7.4% over the forecast period, and packet-switched telephony lines will grow at a CAGR of 3%, as various fibre roll-out programs across APAC encourage consumers to switch to VoIP.

“Despite an increase in the overall voice telephony access lines in the region, fixed voice revenue will continue to decline over the forecast period on account of increasing mobile voice and OTT voice usage,” concluded Pradeepthi.