A GlobalData report predicts that a sharp fall in mobile and fixed voice revenue will depress overall segment growth.
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A new report on the South Korean telecom sector predicts a sharp fall in mobile and fixed voice revenue in the next five years.
The annual “South Korea Telecom Operators Country Intelligence Report” from GlobalData delves deep into the country’s telecommunications market and examines the competitive dynamics of the industry, as well as regulatory trends and the “evolution of demand by type of service and technology / platform in the fixed telephony, broadband, mobile and pay TV markets. ”
According to GlobalData, South Korean revenues for the telecom and pay TV market will fall to $ 35.9 billion by 2024 compared to 2024 from $ 36.5 billion in 2019. The huge growth observed with mobile data segments, Fixed broadband and pay TV will be compensated by the huge drop in revenue from mobile voice and message segments and fixed voice segments.
The study predicts that revenues from mobile broadband services will grow with a compound annual growth rate of 3.1% between 2019 and 2024, while total revenues from telecom and pay-TV services will fall with a compound annual growth rate of 0.3%.
Global Data said mobile data would grow to 43.6% in 2024, an increase of 36.9% in 2019.
It attributed the increase in growth rates to the growing field of machine-to-machine connections and the expected expansion of 5G services, as well as the increase in average mobile data revenue per user.
“Although 4G will be South Korea’s leading mobile technology during the forecast period, its share of total mobile subscriptions will fall from 79.2% in 2019 to 59.6% in 2024,” said GlobalData telecomanalist, Deepa Dhingra.
“Now that all three major operators, SK Telecom, KT and LGU + have launched their 5G services in April 2019 and expanded the network coverage, the share of 5G in the total number of subscriptions by the end of 2024 will be 40.1%.”
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The report says that South Korea’s three largest operators, SK Telecom, KT and LGU +, all launched commercial 5G services in April and are focusing laser on upgrading or expanding networks to cater for the growing demand for fast mobile broadband services.
“Operators are investing heavily in expanding their 5G networks and services to compete in the mobile broadband market,” Dhingra added.
“For example, KT has pledged an investment of $ 13.8 billion in 5G infrastructure and ICT convergence by 2021, while SK Telecom is deploying aggressive 5G network in all populated public areas such as highways, trains, major cities and parks.”
Fixed broadband revenues, according to the report, will increase by 0.9% until 2024, according to the report, which owes its growth to the broad acceptance of fiber-to-the-home services and government efforts to increase the penetration of fiber optic networks in to enlarge the entire country.
Mobile data accounts for an estimated 36.9% share of total revenues from telecom services in 2019 and the GlobalData report predicts that this figure will rise to nearly 44% in 2024.
For the pay-TV industry in South Korea, GlobalData predicts revenue to grow with a compounded annual growth of 0.7% over 2019-2024, thanks to the steady growth of internet protocol television subscriptions.
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