Forecast: 5G to drive South Korea mobile services
April 30, 2021
The mobile data service revenues will grow at a 7.1 per cent CAGR over 2020-2025 driven by the projected rise in the adoption of 5G services, which yield higher average revenue per user (ARPU), according to GlobalData, a data and analytics company.
An analysis of GlobalData’s South Korea Mobile Communication Forecast Model reveals that total mobile services revenue in South Korea is set to increase at a compound annual growth rate (CAGR) of 3.7 per cent from $21 billion in 2020 to $25.1 billion in 2025, supported by continued growth in the mobile data services segment.
Mobile voice and mobile messaging service revenues on the other hand will continue with their downward trend as users increasingly adopt OTT-based communication platforms.
Aasif Iqbal, Telecom Analyst at GlobalData, says: “Though 4G services will remain the leading mobile technology by subscriptions in South Korea until 2024, 5G subscriptions will grow at the fastest CAGR of 26.9 per cent over the forecast period 2020-2025. GlobalData expects 5G subscriptions to account for 52 per cent share of the total mobile subscriptions by the end of 2025. This growth will be primarily supported by 5G network expansions by the three major mobile network operators (MNOs) in the country – SK Telecom, KT and LG Uplus. In July 2020, all the three MNOs agreed to invest KRW25.7 trillion to boost 5G infrastructure in the country through 2022.
“SK Telecom led the mobile market in terms of subscription share in 2020 and will remain the leading mobile operator through 2025. SK Telecom’s market leadership will be primarily supported by the 5G promotional plans with value added benefits. For instance, it is offering unlimited mobile data and voice calling, VIP membership (subscribers can avail discounts on movies, coffees, transportation 12 times a year) along with free subscription of the music application FLO music”