Sunday, 29 September 2019 03:44

Mobile data forecast as China’s telecom, pay-TV market largest revenue contributor Featured

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Mobile data forecast as China’s telecom, pay-TV market largest revenue contributor Image Stuart Miles, FreeDigitalPhotos.net

Mobile data will be the largest revenue-contributing segment to China’s telecom and pay-TV market between 2018 and 2023, according to one global analyst firm.

The revenue share of mobile data services in China’s telecom market is expected to grow from 34% in 2018 to 37% by the end of 2023, according to a report - ‘China Country Intelligence Report’ - from analyst firm GlobalData, with the growth to be supported by the widespread adoption of 4G services and the planned commercial launch of 5G services in 2020.

And the report reveals that the average monthly mobile data usage will increase from 2.6GB in 2018 to about 9.9GB by 2023, driven by rising consumption of high-bandwidth online video and social media services over smartphones.

Deepa Dhingra, Telecom Analyst at GlobalData, says: “4G will remain the most adopted wireless network technology throughout the forecast period due to the growing availability of low-cost (under US$100) 4G-enabled smartphones from domestic manufacturers such as Xiamoi, Huawei and Oppo, and the widespread availability of LTE network.

“With all the major MNOs carrying out 5G trails using test frequencies awarded by the regulator, GlobalData expects commercial 5G services to be available in China by 2020, and account for about 11.4% of total mobile subscriptions by 2023-end.”

GlobalData says the fixed broadband segment will register the fastest revenue growth over the forecast period, driven by robust increase in high-speed fiber-to-the-home/building (FTTH/B) subscriptions.

In addition, the government initiatives to expand broadband Internet access to underserved areas will also drive fixed broadband penetration and support revenue growth in the segment.

“Mobile voice revenue, on the other hand, will decline over the forecast period due to drop in monthly mobile voice usage amid rising substitution of mobile voice services with domestic OTT communication applications such as WeChat,” Global Data notes.

“In the pay-TV market, GlobalData expects that the robust growth in Internet Protocol television (IPTV) subscriptions will help offset subscription losses in the cable TV segment and sustain growth in overall pay-TV service revenues through 2023.”

Dhingra concludes: “Operators will continue to focus on strengthening position in the IPTV segment through their IPTV integrated multi-play bundled plans.”

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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