Driven by a continuous rise in high fiber-to-the-home (FTTH) subscriptions and FTTH average revenue per user (ARPU), China’s fixed broadband service revenue is poised to increase at a compound annual growth rate (CAGR) of 3.6% between 2021 and 2026, said a study.
According to GlobalData, the fixed broadband penetration of the population will increase from 35.9% in 2021 to 39% in 2026 supported by the ongoing broadband network coverage expansions by operators such as China Mobile, China Telecom, and China Unicom.
“Fiber will continue to be the top broadband technology in terms of subscriptions throughout the forecast period. This is backed by the aggressive approach and investments by the state-owned firms like China Mobile and China Unicom for the expansion of gigabit fiber-optic network infrastructure in every part of the country with three years and 10 years of strategic plans namely ‘Dual-gigabit’ and ‘Gigabit Broadband Development Plan’," said Kantipudi Pradeepthi, Senior Analyst at GlobalData.
The study revealed that cable Internet’s share in fixed broadband lines is expected to remain stagnant at 5% through the forecast period, whereas DSL broadband will continue to lose subscriptions.
Pradeepthi added: “China Mobile is expected to lead the fixed broadband services market in terms of subscriptions in 2021, followed by China Telecom. China Mobile will maintain its leading position through 2026 driven by promotional discount offers on various broadband and multi-play plans.”