Mobile services revenue in South Korea is forecast to increase at a compound annual growth rate (CAGR) of 3.7 percent from $21 billion in 2020 to $25.1 billion in 2025, supported by growth in the mobile data services segment.
The mobile data service revenues in South Korea will grow at a 7.1 percent CAGR over 2020-2025 driven by the rise in ARPU from 5G services, ARPU), according to GlobalData research report.
Mobile voice and mobile messaging service revenues will dip as users adopt over the top (OTT)-based communication platforms.
4G services will remain the leading mobile technology by subscriptions in South Korea until 2024. 5G subscriptions will grow at the fastest CAGR of 26.9 percent over the forecast period 2020-2025. 5G subscriptions will account for 52 percent share of the total mobile subscriptions by the end of 2025.
“This growth will be primarily supported by 5G network expansions by the three major mobile network operators (MNOs) in the country – SK Telecom, KT and LG Uplus. In July 2020, all the three MNOs agreed to invest KRW25.7 trillion to boost 5G infrastructure in the country through 2022,” Aasif Iqbal, Telecom Analyst at GlobalData, said.
SK Telecom led the mobile market in terms of subscription share in 2020 and will remain the leading mobile operator through 2025. SK Telecom’s market leadership will be primarily supported by the 5G promotional plans with value added benefits.
“For instance, it is offering unlimited mobile data and voice calling, VIP membership (subscribers can avail discounts on movies, coffees, transportation 12 times a year) along with free subscription of the music application FLO music,” Aasif Iqbal said.
