Forecast: Telco revenue in Vietnam to increase at 4.4% CAGR
April 21, 2023
The total telecom services revenue in Vietnam is expected to increase at a compound annual growth rate (CAGR) of 4.4 per cent during 2022-2027, led by the growth in mobile data and fixed broadband segments, according to GlobalData, a data and analytics company.
GlobalData’s Vietnam Telecom Operators Country Intelligence Report reveals that the mobile voice service revenue will decline during the forecast period, due to a steady drop in mobile voice service ARPU, with users increasingly shifting to OTT communication platforms.
Mobile data service revenue, on the other hand, will increase at a healthy CAGR of 13.5 per cent over the forecast period, driven by the continued rise in mobile internet users, particularly on 4G networks.
The scheduled launch of 5G services in 2023 and the subsequent rise in its adoption over the forecast period is expected to boost the mobile data service ARPU levels and drive revenue growth in the segment.
Aasif Iqbal, Telecom Analyst at GlobalData, commented: “4G services accounted for the largest share of the total mobile subscriptions in 2022 and will continue to do so through to 2027. Though from a low subscriber base, 5G service adoption is expected to gain pace over the forecast period as it becomes more widely available with telcos and the government focusing on 5G network expansion. For instance, the government of Vietnam plans to achieve nationwide 5G coverage by 2030.
In the fixed communication services segment, fixed voice service revenue will decline over the forecast period, due to losses in circuit-switched subscriptions and declining fixed voice ARPU. Fixed broadband service revenue, on the other hand, will grow at a CAGR of 4.5 per cent over 2022-2027 period, mainly led by fibre broadband services.
Growing demand for higher-speed broadband connectivity and the expansion of fibre-optic network infrastructure by the government across the country will support the growth of fiber broadband service adoption over the forecast period. The government of Vietnam plans to expand fibre internet infrastructure to 80 per cent of the households and 100 per cent of the communities by the end of 2025.
Iqbal concluded: “Viettel led the mobile services segment, in terms of subscriptions in 2022, and will continue to hold the top position throughout the forecast period, thanks to its strong focus on 4G/5G network expansions. VNPT topped the fixed voice and fixed broadband segments. In fixed broadband segment, VNPT will maintain its leadership through to 2027, supported by its strong position in the FTTH segment, and discounted multiplay service bundles, combining fixed broadband, mobile, and pay-TV services.”