China fixed broadband services revenue to grow at CAGR of 3.6%
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Update time : 2021-07-30 15:47:51
Driven by the endless rise in high fiber-to-the-home (FTTH) subscriptions and FTTH average revenue per user (ARPU), China’s fixed broadband service revenue is poised to extend at a compound annual rate of growth (CAGR) of 3.6% between 2021 and 2026, said a study.
According to GlobalData, the fixed broadband penetration of the population will increase from 35.9% in 2021 to 39% in 2026 supported by the continued broadband network coverage expansions by operators like China Mobile, China Telecom, and China Unicom.
“Fiber will still be the highest broadband technology in terms of subscriptions throughout the forecast period. this is often backed by the aggressive approach and investments by the state-owned firms like China Mobile and China Unicom for the expansion of gigabit fiber-optic network infrastructure in every part of the country with three years and 10 years of strategic plans namely ‘Dual-gigabit’ and ‘Gigabit Broadband Development Plan’," said Kantipudi Pradeepthi, Senior Analyst at GlobalData.
The study revealed that cable Internet’s share in fixed broadband lines is predicted to stay stagnant at 5% through the forecast period, whereas DSL broadband will still lose subscriptions.
Pradeepthi added: “China Mobile is predicted to steer the fixed broadband services market in terms of subscriptions in 2021, followed by China Telecom. China Mobile will maintain its leading position through 2026 driven by promotional discount offers on various broadband and multi-play plans.”