Higher than anticipated growth in fixed broadband revenues will help the overall fixed communication services market in Japan to post revenues of US$47bn in 2020 amidst the COVID-19 crisis, which is expected to reach US$48bn by 2024, according to revised forecasts from GlobalData, a leading data and analytics company.

GlobalData’s Japan Telecom Operators Country Intelligence Report highlights that the growing adoption of fiber-to-the home (FTTH) subscriptions and improving average revenue per user (ARPUs) from fixed broadband services will drive the overall revenues from the fixed broadband segment at a compound annual growth rate (CAGR) of 3.5% during 2019-2024. Revenues from the fixed voice services will decline at a CAGR of 4.0% over the 2019-2024 period, mainly due to a drop in circuit-switched subscriptions and a decline in fixed voice ARPU.

Deepa Dhingra, Telecom Analyst at GlobalData, says: “Fiber-optic is expected to remain the primary fixed broadband technology in Japan over 2019-2024, mainly led by ongoing expansion of fiber-optic networks by telcos such as NTT Docomo and discounts on bundle plans.

“NTT will remain the market leader in the fixed voice market over 2019-2024, supported by its dominant position in both the circuit-switched and voice over Internet protocol (VoIP) segments. NTT will also lead the fixed broadband segment over the forecast period, as it has been focusing on boosting international broadband capacity supply in the country through the deployment of the Jupiter subsea cable connecting the US, Japan and the Philippines.”