China fixed phone service revenues to drop 0.9% to USD 239bn in 2026

China fixed phone service revenues to drop 0.9% to USD 239bn in 2026

Due to a drop in average revenue per user (ARPU) levels, the total fixed communications services revenue in China is expected to decline at a compounded annual growth rate (CAGR) of 0.9% from US$250bn in 2021 to US$239bn in 2026.

GlobalData’s China Fixed Communication Forecast reveals that fixed voice and fixed broadband service lines will expand at a CAGR of 4.5% and 1.6%, respectively, over the forecast period.

However, both voice telephony and broadband ARPU levels will drop considerably over the forecast period thereby dragging overall revenue growth in the market. For Instance, fixed voice and broadband ARPU levels in the residential segment are expected to decline from US$7.08 to US$5.05, and US$33.69 to US$27.94 between 2021 and 2026.

Pradeepthi Kantipudi, the Telecom Analyst at GlobalData, said: “Fibre will remain the leading broadband technology in terms of subscriptions through the forecast period driven by the government’s plans to expand fibre-optic network infrastructure in the country.”

For instance, the implementation of the Dual Gigabit Network Coordinated Development Action Plan (2021-2023) is aimed to improve broadband connectivity and expand fibre-optic networks in the country, said the report.

“China Mobile will lead the fixed broadband services market in 2021, by subscription share, followed by China Telecom and China Unicom. China Mobile will maintain its leadership in the market through 2026 driven by its strong position in the fibre-to-the-home (FTTH) segment and various promotional discount offers on its broadband and multi-play plans,” Pradeepthi added.

Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.