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London, October 13, 2022 /PRNewswire/ – Total global telecom revenue from mobile and fixed broadband services will grow 14% between 2022 and 2027 to reach $1.2 trillion, according to Omdia’s latest research. However, monthly ARPU (average revenue per user) in both mobile and fixed broadband will decrease by 4.2% from €7.48 in 2022 to €7.16 in 2027.
Telecom services revenue forecast by service type
In mobile markets, it is now clear that 5G will not be enough to offset the decline in ARPU as customers are unwilling to pay more for it. Unlimited data and video streaming services bundled into 5G contracts have had some success, but this only gives the industry the illusion of 5G ARPU improvements.
In fixed broadband markets, the transition to fiber has had a positive impact in most cases as the technology provides a much-needed step change in the quality of home broadband service on the back of the epidemic. However, markets with high fiber penetration are seeing significant declines in ARPU. France, Italy And China As competition intensifies and once they migrate, there is no clear monetization path for fiber customers.
Omdia Research Director Ronan de Renesse “People don’t buy technology; they buy exciting new experiences. There is a misconception that operators directly sell the technology they buy to customers, and it doesn’t work. The network is a bed of innovation and innovations. Innovation can grow in things like 4G and mobile applications. It’s not just operators to solve the challenge of ARPU growth. Supersede the rest of the digital services ecosystem.
Omdia forecasts that 5G will have 5.9 billion subscriptions in 2027, which is equivalent to 70.9% of the population. Consumer residential fixed broadband subscriptions delivered by fiber to the home will exceed 1 billion subscriptions by 2027, equivalent to 41.9% of household income.
Ronan de Renesse And Omdia’s team of analysts will be among Network X. October 18-20, 2022. Sign up for a media pass or request a virtual briefing here.
About OMDIA
Omdia, a part of InformaTech, is a technology research and consulting group. Our deep knowledge of technology markets combined with our practical insights empowers organizations to make smart growth decisions.
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Fashiha Khan / T: +44 7503 666806 / E: [email protected]
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Source Omdia
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