Fixed communication services revenue in Japan is forevcast to grow marginally from $25.4 billion (€23.3bn) in 2024 to $26.6 billion in 2029, maintaining a sluggish CAGR of 0.9 per cent. The decline in fixed voice services will continue, while broadband growth remains moderate, driven by increasing fibre adoption but offset by falling cable and xDSL subscriptions, according to GlobalData, the data and analytics company.

GlobalData’s research reveals that fixed voice service revenue will decline at a CAGR of 0.5 per cent over the 2024-2029 period, given the steady drop in circuit-switched subscriptions and sluggish growth in packet switched (VoIP) subscriptions as users from traditional voice services to OTT/app-based communications.

Fixed broadband service revenue, on the other hand, is expected to increase at a moderate CAGR of 1.6 per cent over the forecast period, mainly due to growth in FTTH/B subscriptions.

Neha Mishra, Telecom Analyst at GlobalData, commented: “Fibre lines accounted for about 87 per cent share of the total fixed broadband lines in 2024 and will remain the leading broadband technology through to 2029. This growth in fibre lines will be supported by rising demand for high-speed broadband connectivity and government’s efforts to increase the availability and promote the adoption of FTTH/B services.

For instance, in 2023, the Japanese government announced its goal to cover 99.9 per cent of households with fibre-optic networks by the end of 2027 while bridging regional disparities in broadband access.

This increase in FTTH/B subscriptions will however be offset by the continued decline in cable Internet and xDSL subscriptions, keeping growth in the overall fixed broadband service revenues moderated over the forecast period.

Neha concludes: “NTT Docomo will lead both fixed voice and fixed broadband segments by subscriber share through 2029. The telco’s leading position in the fixed broadband segment is due to its strong presence in the FTTH/B service segment, offering a wide range of tariff plans based on data usage that serve the needs of both entry-level as well as premium users.”

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Categories: Articles, Broadband, FTTH, Markets, Research

Tags: FTTH, globaldata, telco