5G technology will boost mobile service revenue in Asia-Pacific region

Phan Van Hoa (According to Telecomlead) DNUM_CEZAEZCACE 16:13

(Baonghean.vn) - The forecast of the multinational corporation providing data, analysis and consulting services GlobalData (UK) shows that the mobile information services market in the Asia-Pacific (APAC) region will grow significantly in the period 2023 - 2028.

Accordingly, total mobile services revenue in the APAC region will increase at a compound annual growth rate (CAGR) of 4%, increasing from US$321.9 billion in 2023 to US$388.7 billion in 2028. The driving force behind this growth will be primarily the 5G mobile data services segment, which is poised to see significant adoption and investment across the region.

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Illustration photo.

During the forecast period 2023-2028, mobile data services are expected to remain the major revenue generator in the APAC mobile services market. This growth is expected to be driven by the widespread adoption of 5G services with high average revenue per user (ARPU). This means that more and more users will be switching to 5G services.

In addition to the ongoing 5G deployment in developed markets such as Australia, China, Japan, India, Hong Kong, Singapore and South Korea, many other countries in the region are also preparing to deploy commercial 5G networks in the near future, which will boost the revenue growth prospects of the mobile data segment in the region.

Currently, many telecom operators in the APAC region have begun testing 5G networks in major urban centers and are preparing to officially deploy 5G services by the end of the year.

Government support for 5G expansion initiatives will further boost the mobile data services market in the APAC region. National strategies and action plans in countries such as Australia, China, India, South Korea, Japan, and Taiwan are all aimed at fostering the 5G ecosystem and expanding the coverage of this new technology.

These initiatives include public sector investment in 5G applications, tax incentives, industry-government collaboration forums, promoting technological innovation, and spectrum management reforms to optimize utilization.

China is expected to maintain its position as the world's largest 5G market, with an estimated 88% of mobile subscribers using 5G networks by 2028. This growth will be driven by significant investments from telecommunications companies and regulatory efforts to expand 5G coverage to rural and industrial areas.

Furthermore, GlobalData forecasts that average monthly data usage will increase significantly, from 22.5 gigabytes in 2023 to 40.7 gigabytes in 2028. This increase will be driven by the popularity of 5G services, the growing consumption of online video and social media content via smartphones, and data-centric packages offered by mobile network operators.

The APAC region has emerged as a battleground for 5G dominance. Countries such as South Korea, Japan, and China are not only rolling out 5G networks, but are also building comprehensive ecosystems to support related industries such as electronics manufacturing and information technology. This goal extends to leveraging opportunities in the Internet of Things (IoT) and machine-to-machine (M2M) communications.

Despite the growth in mobile data services, mobile voice revenues are expected to decline significantly over the forecast period. This decline is attributed to the continued consumer shift towards over-the-top (OTT) services and Internet-based media services.

While the mobile data segment continues to maintain growth momentum, the decline in mobile voice service revenue reflects changing consumer preferences in the digital age, noted Hrushikesh Mahananda, telecoms analyst at GlobalData.

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5G technology will boost mobile service revenue in Asia-Pacific region
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