S Korea: Fixed broadband to drive fixed comms market growth
December 18, 2020
The fixed communications services market in South Korea is expected to reach $6.2 billion in 2025, recording a compounded annual growth rate (CAGR) of 1.2 per cent between 2020 and 2025, mainly driven by growth in fixed broadband segment, according to GlobalData.
GlobalData’s South Korea Telecom Operators Country Intelligence Report forecasts that fixed voice service revenue will decline at a CAGR of 3.2 per cent over 2020-2025 due to the falling circuit-switched and voice over Internet protocol (VoIP) subscriptions as well as marginal drop in fixed voice average revenue per user (ARPU) levels.
On the other hand, fixed broadband service revenue will increase at a CAGR of 3.6 per cent, driven by the robust growth in higher ARPU generating fibre-to-the-home (FTTH) subscriptions. Fibre will be the largest technology to deliver fixed broadband services in South Korea.
Aasif Iqbal, Telecom Analyst at GlobalData, says: “Fibre lines will account for a majority 82.5 per cent share of the total fixed broadband lines by the end of 2020, and will continue to grow to account for 87 per cent share of the total fixed broadband lines by 2025, supported by growing demand for higher-speed broadband connectivity in the country and the operator investments on fibre infrastructure expansions, such as the one carried out by LG U+.
“KT will lead the fixed voice market through 2025, supported by its strong foothold in the circuit switched segment and growing focus on VoIP segment. The operator also leads the fixed broadband market led by its leadership in the growing FTTH segment.”