Singapore’s fixed market revenue to grow at 2.5% CAGR between 2019 and 2024, says GlobalData

The total fixed services revenue in Singapore is expected to increase at a compound annual growth rate (CAGR) of 2.5% from US$1.4bn in 2019 to US$1.6bn in 2024, driven by revenue growth in the fixed broadband segment on the back of steady rise in the adoption of fiber-to-the-home (FTTH) subscriptions and growing broadband average revenue per user (ARPU), according to GlobalData, a leading data and analytics company.

GlobalData’s Singapore Telecom Operators Country Intelligence Report predicts that the fixed broadband revenue will grow at a CAGR of 6.5% over 2019-2024 majorly due to the projected growth in the FTTH lines and government’s initiative to establish an international data channel between Singapore and China with 260Gbps data capacity, aimed at offering a better network experience with lower latency and support data-driven businesses in South Asian countries.

Revenues from fixed voice will decline during the forecast period, primarily due to falling voice ARPUs and declining circuit-switched subscriptions.

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Deepa Dhingra, Telecom Analyst at GlobalData, says: “Fixed voice ARPUs will decline during 2019-2024 from US$18.75 in 2019 to US$13.77 in 2024, due to user migration towards lower-priced Voice over Internet Protocol (VoIP) services.”

Meanwhile broadband ARPUs will slightly increase from US$42.43 in 2019 to US$43.50 by 2024, supported by the rising adoption of higher-value broadband plans and promotional offers by operators.

Dhingra concludes: “Singtel will continue to lead the broadband segment over 2019-2024, driven by the operator’s continued focus on offering competitive prices with additional benefits such as free router and rebates on monthly tariffs to maintain its position in the market.”

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