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Classified in: Science and technology, Business
Subjects: SVY, ECO

Omdia: Telecom services revenue will fall 4.2% per user as new tech fails to deliver enough value by 2027

LONDON, Oct. 13, 2022 /PRNewswire/ -- Total worldwide telecoms revenues from mobile and fixed broadband services will grow 14% between 2022 and 2027 to reach ?1.2 trillion according to latest research from Omdia. However monthly ARPU (Average Revenue Per User) combined across both mobile and fixed broadband will fall by 4.2% from ?7.48 in 2022 to ?7.16 in 2027.

Telecoms services revenue forecast by service type

In mobile markets, it is now evident that 5G will not be sufficient to offset ARPU decline as customers are unwilling to pay more for it. Unlimited data and video streaming services bundled exclusively on 5G contracts have had some success, but this only gives the industry the illusion of a 5G ARPU uplift.

In fixed broadband markets, the transition to fiber has had a net positive impact in most cases as the technology offers a much-needed step-change in home broadband quality of service on the back of the pandemic. However, markets with high fiber penetration are seeing a significant drop in ARPU such as France, Italy and China as competition intensifies and there isn't a clear monetisation path for fiber customers once they transitioned.

Omdia Research Director Ronan de Renesse said: "People don't buy technology; they buy fun exciting new experiences. There is a misconception that operators should be reselling the technology they buy directly to customers, and it doesn't work. The network is the bedrock on which innovation and creativity can flourish like 4G and mobile apps. It is not just up to operators to solve the ARPU growth challenge but rather the rest of the digital services ecosystem."

Omdia forecasts 5G will account for 5.9 billion subscriptions in 2027 equivalent to a population penetration of 70.9%. Consumer residential fixed broadband subscriptions delivered via fiber to the home will exceed 1 billion subscriptions by 2027 equivalent to a household penetration of 41.9%.

Ronan de Renesse and a team of Omdia analysts will be at Network X between 18-20 October 2022. Register for a media pass or request a virtual briefing here.


Omdia, part of Informa Tech, is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.

Media Contact
Fasiha Khan / T: +44 7503 666806 / E: fasiha.khan@omdia.com
Visit www.omdia.com

Photo - https://mma.prnewswire.com/media/1920449/Telecoms_services_revenue.jpg


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News published on 13 october 2022 at 06:27 and distributed by: