The fixed communication service revenue in the Asia-Pacific region is expected to experience positive growth the in next five years, according to industry sources.
The market is poised to reach USD 386.9 billion by 2028 from USD 368 billion in 2023, with a compound annual growth rate (CAGR) of 1%, driven by the increasing adoption of fixed broadband services, particularly in emerging markets across the region.
Fixed Broadband Adoption
The fixed broadband account penetration in the region reached 21.1% at the end of 2023, making it a fairly developed region in terms of fixed broadband adoption.
By 2028, the fixed broadband adoption is expected to reach a 23.3% increase, driven mainly by the continued expansion of broadband networks and the adoption of services in countries such as Thailand, Indonesia, India, and the Philippines.
Meanwhile, developed countries such as Australia, New Zealand, and Singapore have already achieved significant broadband penetration due to the implementation of national broadband network (NBN) projects.
“The growth in the APAC fixed broadband services market will be led by fiber broadband segment. Fiber-optic access lines will account for a share of about 63% of the total fixed access lines in the developed APAC region by 2028 while its share in the total fixed lines in the emerging APAC markets will be relatively high at 91%,” said Kantipudi Pradeepthi, a Telecom Analyst.
The Demand for Faster Internet
This development is expected to continue due to the increasing demand for faster internet, with fiber broadband plans becoming more affordable. These plans often come with extra services like subscription video on demand (SVoD). Big service providers like Reliance Jio India, Spark New Zealand, and Telstra Australia are making fiber plans more appealing by bundling them with services like pay-TV and SVoD.
However, voice telephony penetration in the APAC will remain stagnant at approximately 10% for the same forecast period. While it is anticipated that circuit-switched telephone lines will decline at a CAGR of 5.8%, packet-switched telephone lines are expected to grow at a CAGR of 3.6%. Consumers in the Asia-Pacific have been encouraged to switch to Voice over Internet Protocol (VoIP) through a variety of fiber roll-out programs that have been implemented across the region.
“Despite the increase in the overall voice telephony access lines in the region, fixed voice revenue will continue to decline over the forecast period on account of the increasing mobile voice and OTT voice usage,” said Pradeepthi.