Japan’s fixed services market revenue to decline by 0.9% CAGR between 2019 and 2024, says GlobalData

The total fixed services revenue in Japan is expected to decline at a compound annual growth rate (CAGR) of 0.9% from US$47.7bn in 2019 to US$45.4bn in 2024, primarily due to steady drop in revenue contribution from fixed voice services segment, according to GlobalData, a leading data and analytics company.

GlobalData’s Japan Telecom Operators Country Intelligence Report predicts that fixed voice service revenue will decline at a CAGR of 4.8% over 2019-2024, due to falling circuit-switched subscriptions and steady drop in fixed voice average revenue per user (ARPU) levels. Fixed broadband service revenue, on the other hand, will grow at a CAGR of 1.7% over the same period driven by continuous rise in fiber-to-the-home (FTTH) subscriptions and an increase in broadband ARPU.

Deepa Dhingra, Telecom Analyst at GlobalData, says: “Fixed broadband ARPU will increase from US$57.25 in 2019 to US$59.46 by 2024-end with the increasing adoption of FTTH services that yield higher ARPUs. Fixed voice ARPU will drop from US$31.13 in 2019 to US$25.42 by 2024.

“NTT will lead the Japanese fixed broadband segment over 2019-2024, driven by its strong focus and investments on increasing the fiber capacity in the country.”

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