21 Dec 2020
Posted in Technology
Fixed voice to pulldown fixed services revenue in Singapore over next five years, forecasts GlobalData
The total fixed communications services revenue in Singapore is set to decline at a compounded annual growth rate (CAGR) of 1.0% during 2020-2025 to reach US$1.4bn in 2025, primarily due to steady drop in revenue contribution from fixed voice services segment, according to GlobalData, a leading data and analytics company.
GlobalData’s Singapore Telecom Operators Country Intelligence Report shows fixed voice service revenue to decline at a CAGR of 4.5% over 2020-2025 due to falling circuit-switched subscriptions and drop in fixed voice average revenue per user (ARPU).
After a temporary decline in 2020 due to free/discounted services offered by operators such as Singtel’s free remote working solutions amidst the COVID-19 pandemic, the fixed broadband services revenue will recover in 2021 and grow at a CAGR of 3% over 2020-2025. This growth will be supported by increasing fiber-to-the-home (FTTH) subscriptions and rising adoption of multi-play bundles with fixed broadband services.
Deepa Dhingra, Telecom Analyst at GlobalData, says: “Fiber lines will represent 99.8% of the total fixed broadband lines by 2020-end and will go on to account for 100% share of the total fixed broadband lines by 2025. This growth in fiber broadband services will be supported by rising consumer demand for higher-speed broadband connectivity and investment in fiber infrastructure in the country.
“Singtel will lead both fixed voice and fixed broadband markets through 2025. Its leading position in the fixed voice segment is primarily due to its strong foothold in the circuit-switched segment while its leadership in the fixed-broadband segment is supported by its strong position in the FTTH segment and promotional multi-play bundle plans.”