China’s fixed communications services market revenue to grow at 1.7% CAGR over 2019-2024, forecasts GlobalData

The total fixed communications services revenue in China is forecast to increase at a compounded annual growth rate (CAGR) of 1.7% from US$76.4bn in 2019 to US$83.2bn in 2024, primarily driven by the growth in fixed broadband segment, according to GlobalData, a leading data and analytics company.

GlobalData’s China Telecom Operators Country Intelligence Report predicts that fixed voice services revenue will increase, albeit at a slower CAGR of 0.8% over 2019-2024, with growing demand for IP-based voice services offsetting steady decline in circuit switched lines. Fixed broadband revenue, on the other hand, will grow at a CAGR of 2.0% over 2019-2024, primarily driven by rising broadband penetration.

Deepa Dhingra, Telecom Analyst at GlobalData, says: “Fixed broadband ARPUs will drop from US$12.01 in 2019 to US$9.82 by 2024-end, owing to operator pricing strategies to lower fixed broadband tariffs amid growing competition. Fixed voice ARPU will also drop from US$4.64 in 2019 to US$3.16 by 2024.”

China Telecom will lead the fixed voice segment over 2019-2024, driven by substantial rise in its VoIP subscriptions base during the forecast period while its leadership in the fixed-broadband segment will be essentially due to its strong focus on offering higher-speed fiber optic services to business and residential customers.

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