05 Mar 2021
Posted in Technology
China’s multi-play service revenue to increase at 12.5% CAGR between 2020 and 2025, forecasts GlobalData
The total multi-play service revenue in China is expected to grow at a robust compound annual growth rate (CAGR) of 12.5% between 2020-2025 and is forecast to reach US$74.1bn by the end of 2025, driven by strong growth across triple and quad-play subscriptions, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s China Multi-play Forecast Model reveals that while double-play revenue in the country will increase at a CAGR of 7.5% during 2020-2025, the triple and quadruple-play revenue will also increase at CAGR of 14.0% and 22.1%, respectively, during the forecast period.
Aasif Iqbal, Telecom Analyst at GlobalData, says: “The revenue growth in multi-play services across China will be primarily driven by the widespread availability of fixed broadband infrastructure and increasing broadband penetration, which is expected to increase and reach 43% in 2025.”
China Telecom will remain the market leader through 2025 followed by China Unicom. China Telecom is constantly promoting its multi-play bundles with high-speed fiber connectivity to attract customers and drive revenues. Moreover, its widespread fiber-optic network enables it to deliver high quality services such as 4K HD TV.
Mr Iqbal concludes: “Local operators should focus on building innovative triple and quadruple-play packages to attract single-play and double-play customers, which correspond to higher ARPU.”