Forecast: Fibre to drive China fixed broadband

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China’s fixed broadband service revenue is poised to increase at a compound annual growth rate (CAGR) of 3.6 per cent between 2021 and 2026 driven by continuous rise in high fibre-to-the-home (FTTH) subscriptions and FTTH average revenue per user (ARPU), according to GlobalData, a data and analytics company.

An analysis of GlobalData’s China Fixed Communication Model reveals that fixed broadband penetration of population will increase from 35.9 per cent in 2021 to 3 per cent in 2026 supported by the ongoing broadband network coverage expansions by operators such as China Mobile, China Telecom and China Unicom.

Kantipudi Pradeepthi, Senior Analyst at GlobalData, says: “Fibre will continue to be the top broadband technology in terms of subscriptions throughout the forecast period. This is backed by the aggressive approach and investments by the state-owned firms like China Mobile and China Unicom for the expansion of gigabit fibre 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’.

According to GlobalData’s China Fixed Market Share Model, cable Internet’s share in fixed broadband lines is expected remain stagnant at 5 per cent through the forecast period, whereas DSL broadband will continue to lose subscriptions.

Pradeepthi concludes: “China Mobile is expected to lead 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.”


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