Forecast: Robust rise in China multi-play service revenue
March 5, 2021
The total multi-play service revenue in China is expected to grow at a robust compound annual growth rate (CAGR) of 12.5 per cent between 2020-2025 and is forecast to reach $74.1 billion by the end of 2025, driven by strong growth across triple and quad-play subscriptions, according to GlobalData, the data and analytics company.
An analysis of GlobalData’s China Multi-play Forecast Model reveals that while double-play revenue in the country will increase at a CAGR of 7.5 per cent during 2020-2025, the triple and quadruple-play revenue will also increase at CAGR of 14 per cent and 22.1 per cent, respectively, during the forecast period.
Aasif Iqbal, Telecom Analyst at GlobalData, commented: “The revenue growth in multi-play services across China will be primarily driven by the widespread availability of fixed broadband infrastructure and increasing broadband penetration, which is expected to increase and reach 43 per cent in 2025.”
China Telecom will remain the market leader through 2025 followed by China Unicom. China Telecom is constantly promoting its multi-play bundles with high-speed fiber connectivity to attract customers and drive revenues. Moreover, its widespread fiber-optic network enables it to deliver high quality services such as 4K TV.
Iqbal concluded: “Local operators should focus on building innovative triple and quadruple-play packages to attract single-play and double-play customers, which correspond to higher ARPU.”