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Forecast: South Korea mobile service revenue set for growth

May 25, 2023

The total mobile services revenue in South Korea is predicted to increase from $20.1 billion (€18.7bn) in 2022 to $23.2 billion in 2027, at a compound annual growth rate (CAGR) of 3 per cent, mainly driven by the robust growth in M2M/IoT subscriptions and mobile data services segment, forecasts GlobalData, the data and analytics company.

GlobalData’s South Korea Mobile Broadband Forecast (Q1 2023) reveals that M2M/IoT subscriptions are set to increase at a CAGR of 14 per cent between 2022 and 2027, adding fillip to the overall post-paid service revenues through the forecast period.

While the mobile voice service revenues in the country will continue to decline, mobile data service revenue is set to grow at a CAGR of 6 per cent between 2022 and 2027, mainly due to healthy growth in the higher-ARPU 5G subscriptions.

Srikanth Vaidya, Telecom Analyst at GlobalData, commented: “The average monthly mobile data usage in South Korea is expected to increase from 12.5 GB in 2022 to 29.6 GB in 2027, driven by the growing consumption of online video and social media content over smartphones, thanks to the widespread availability of 4G services and increase in 5G services availability.”

GlobalData is optimistic about the country’s mobile broadband services with 5G services leading the way. Though 4G services currently account for the largest share in the country, 5G services will emerge as the leading mobile technology segment in 2024 and go on to account for around 82 per cent of the total subscriptions in 2027. This growth will be driven by the growing demand for high-speed mobile internet services, growing M2M/IoT applications, and the initiatives of operators and the government to boost 5G infrastructure in South Korea.

Vaidya concluded: “SK Telecom led the mobile services market in South Korea, in terms of mobile subscriptions, in 2022, followed by KT Corporation. SK Telecom is expected to retain its leading position through 2027, primarily driven by its strong focus on the M2M/IoT segment and accelerated pace of its 5G service expansions.”

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