The total fixed communication services revenue in Japan is expected to increase at a sluggish compounded annual growth rate (CAGR) of 0.5% from US$46.3bn in 2020 to US$47.5bn in 2025, with continued decline in fixed voice service revenues weighing down on the growth momentum, according to GlobalData, a leading data and analytics company.

GlobalData’s Japan Fixed Communications Model reveals that the fixed voice service revenue in Japan will decline at a CAGR of 4.2% during 2020-2025, due to the steady drop in circuit switched subscriptions and voice ARPU levels.

On the other hand, fixed broadband service revenue will increase at a 3.1% CAGR, owing to improving broadband penetration in the country and growing consumer adoption of fiber-optic broadband plans that yield higher-ARPUs.

Growing demand for high-speed Internet services to support remote working requirements and at-home entertainment options like video streaming and online gaming amidst the COVID-19 pandemic induced lockdowns and stay-at-home scenario will add to the growth in fixed broadband service revenues.

Aasif Iqbal, Telecom Analyst at GlobalData, says: “Fiber-optic lines will remain the most prominent fixed broadband technology in Japan through 2020-2025 and will go on to account for 83.2% of the total fixed broadband lines in the country by the end of the forecast period. This can be attributed to the expansion of FTTx networks by operators such as NTT Docomo and discounted fiber-to-home bundled plans offered by operators.

“State-owned NTT will lead the fixed voice services segment in terms of subscriptions through the forecast period, supported by strong position in the traditional circuit-switched service as well as in VoIP service segments. The operator will also lead the fixed broadband services market, driven by its promotional multi-play packages with fixed broadband services as a part of the bundles.”