11 MAR 2024

APAC: Multiplay service revenues to grow at 3.4% annually

A forecast by GlobalData revealed that the region is expected to experience an exponential growth between 2022 and 2027.

11 MAR 2024

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Multiplay service revenue in Asia-Pacific (APAC) is expected to grow at a compound annual growth rate (CAGR) of 3.4% from $239.7 billion in 2022 to $283.6 billion in 2027, driven by the continued rise in the number of multiplay households in the region, and growth in the average monthly multiplay household spending, as reported by GlobalData.

GlobalData’s Asia-Pacific Multiplay Services Forecast reveals that the number of multiplay service households in the region will increase at a CAGR of 2.2% over the forecast period. China is the largest country in terms of household multiplay subscriptions, while underpenetrated markets like India are expected to see faster subscriber growth.

Subba Reddy, Telecom Analyst at GlobalData, commented: “While doubleplay service plans will account for the majority of the multiplay households in Asia-Pacific during the forecast period, its share in the total will drop from 70% in 2022 to 64% in 2027. Tripleplay service will see its share of total multiplay households grow from 24% in 2022 to 29% in 2027.”

Steady growth in the adoption of quadrupleplay services, which attract higher average household spending, will especially boost the overall multiplay service revenue growth over the forecast period.

Well established fixed network infrastructure and relatively high fixed broadband household penetration in countries like China (103%), South Korea (92%), and Singapore (77%) allow telcos to promote multiplay service bundles built around high-speed internet services. Reddy concludes: “As operators’ package additional benefits such as unlimited Internet, access to video-on-demand platforms, and free 4K set top box to enhance their bundled service offerings, the average monthly household spend on multiplay service bundles will also increase, thereby driving the overall revenue growth.”