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Japan: Fixed comms revenue to grow 2.5% CAGR to 2026

October 14, 2022

The total fixed communication services revenue in Japan is expected to increase at a compound annual growth rate (CAGR) of 2.5 per cent from $35.3 billion in 2021 to $40 billion in 2026, driven by the growth in both fixed voice and fixed broadband segments, forecasts GlobalData, the data and analytics company.

GlobalData’s Japan Fixed Communications Forecast (Q2 2022) reveals that fixed voice services revenue will increase at a CAGR of 0.9 per cent over 2021-2026, supported by increase in VoIP subscriptions and an increase in fixed voice average revenue per subscriber (ARPU) levels, in terms of US dollar.

Aasif Iqbal, Telecom Analyst at GlobalData, commented: “The fixed broadband services revenue will increase at a CAGR of 3.5 per cent during 2021-2026, driven by the growth in fiber broadband subscriptions and increasing broadband ARPU levels, in dollar terms.”

GlobalData is optimistic about Japan’s fixed broadband services outlook and estimates fibre optic lines to account for 85.3 per cent of the total broadband lines in 2026, supported by the rising demand for higher-speed broadband connectivity, operators’ focus on fiber-optic network service expansions, and increasing availability of the competitively priced fibre broadband plans, inclusive of home fibre internet services. As a result, fibre optic service revenue is expected to increase at a CAGR of 4.1 per cent between 2021 and 2026.

Iqbal concluded: “NTT will lead both the fixed voice and fixed broadband segments in terms of subscription share, through 2026. The telco’s leading position in the fixed broadband segment is supported by its strong presence in both DSL and FTTH segments, and investments in increasing fiber capacity in the country, including the deployment of subsea cables.”

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