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Forecast: China multi-play service revenue poised for growth

March 27, 2024

Multi-play service revenue in China is set to increase at a compound annual growth rate (CAGR) of 1 per cent from $172.7 billion (€159.4bn) in 2023 to $181.5 billion in 2028. With a focus on triple-play and quad-play service bundles, telecom operators leverage robust fixed network infrastructure to promote high-speed internet services, according to GlobalData, the data and analytics company.

GlobalData’s China Multiplay Forecast Model (October 2023) reveals that the total multi-play household subscriptions will increase from 474.4 million in 2023 to 505.2 million in 2028, primarily driven by the increasing adoption of triple-play and quad-play service bundles. Well-established fixed network infrastructure and relatively high fixed broadband household penetration in the country allow telcos to promote multi-play service bundles built around high-speed internet services.

Sarwat Zeeshan, Telecom Analyst at GlobalData, said: “While double-play service plans will account for majority of multi-play households during the forecast period, its household subscriber volume will continue to decline through the forecast period. On the other hand, triple-play and quad-play services’ share of total multiplay households will grow through 2028.”

Zeeshan continued: “The average monthly household spend on overall multi-play bundles will decline over the forecast period, due to decline in double-play and triple-play ARPU’s. The average monthly household spend on quad-play bundles, however, will increase from $44.90 in 2023 to $56.33 in 2028, owing to the growth in fixed mobile convergence household penetration, which will increase significantly from 16 per cent in 2023 to 41 per cent in 2028.”

China Mobile will lead the multi-play market in terms of household subscriptions through to 2028. The operator is leveraging its fibre-to-the-home (FTTH) networks to accelerate multiplay services adoption, with focus on reducing churn and increasing revenue-generating units (RGUs).

Zeeshan concluded: “The projected growth in multi-play service revenue in China underscores the country’s evolving telecom landscape and the increasing demand for integrated service bundles among households. As operators shift focus towards triple-play and quad-play offerings, there is a clear opportunity for them to drive revenue growth and enhance customer satisfaction. With China Mobile leading the market, leveraging its infrastructure for service adoption, the future looks promising for the multiplay sector in China.”

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