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Japan: Fixed comms service revenue set for growth

October 23, 2023

Japan’s fixed communications service revenue is poised to increase at a compound annual growth rate (CAGR) of 1.3 per cent from $29 billion in 2023 to $31 billion in 2028, mainly supported by the fixed broadband segment, forecasts GlobalData, the data and analytics company.

GlobalData’s Japan Fixed Communications Forecast (Q3-2023) reveals that fixed voice service revenue will decline at a 0.8 per cent CAGR over the forecast period owing to consumer shift from traditional telephony to mobile/OTT based communication services and the subsequent decline in voice service average revenue per user (ARPU) levels.

Fixed broadband service revenue, on the other hand, will increase at a CAGR of 2.5 per cent between 2023 and 2028, driven by the growth in fixed broadband subscriptions, especially to fiber broadband services.

Hrushikesh Mahananda, Telecom Research Analyst at GlobalData, commented: “Fibre optic lines will go on to account for 87 per cent of the total broadband lines in 2028, supported by the growing demand for higher-speed broadband connectivity, government and operators’ focus on fibre-optic network service enhancements and expansions, and increasing availability of the competitively priced fiber broadband plans. As a result, fibre optic service revenue is expected to increase at a CAGR of 2.9 per cent between 2023 and 2028.

Mahananda concludes: “NTT will lead both the fixed voice and fixed broadband segments in terms of subscriptions through 2028. The telco’s leading position in the fixed voice segment is backed by its strong position in both the circuit-switched and VoIP segments. In the fixed broadband segment, the telco offers easy instalment payment options for initial set-up fees, and tailored plans to customers living in various types of households, including single-unit homes or multi-unit apartments through its regional units NTT East and NTT West.”

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