The telecom and pay-TV services revenue in Japan is expected to increase at a CAGR of 2.1 percent from $97.6 billion in 2023 to $108.3 billion in 2028, according to a report from GlobalData.
The increase in telecommunication services in Japan will be primarily supported by the mobile data and fixed broadband service segments.
Mobile voice service revenue in Japan will decline, in line with the decline in mobile voice service ARPU, with users increasingly shifting to OTT-based communication apps.
Mobile data service revenue in Japan will increase driven by the growth in smartphone and M2M/IoT subscriptions, and growing adoption of 5G services that yield higher data ARPU.
4G services in Japan accounted for a majority share of the mobile subscriptions in 2023. The report said 5G subscriptions in Japan will surpass 4G’s share of subscriptions in 2026.
NTT Docomo aims to expand 5G network coverage to 90 percent of the country’s population by the end of 2024.
Fixed broadband service revenue will grow at a CAGR of 1.2 percent over 2023-2028 period, supported by the growth in fiber-optic access lines. Fixed voice services will weaken given the decline in circuit-switched subscriptions.
Japan has set a target to expand fiber-optic networks to 99.9 percent of households by the end of 2028.
Pay-TV service segment will see a steady decline in subscriptions over the forecast period, due to subscription losses in the cable TV and DTH segments as a result of growing adoption of OTT video alternatives.
NTT Docomo topped mobile, fixed voice, and fixed broadband service segments, by subscriptions in 2023. NTT Docomo’s expansion of 5G network and focus on M2M/IoT offerings will help the operator maintain its leadership in the mobile services segment.
