Telecom service revenue to dip by 0.2% by 2028

Operators in mature mobile services segments should focus on service differentiation.

The total telecom and pay-TV services revenue in Singapore is forecast to decline at a compounded annual growth rate (CAGR) of 0.2% over the period 2023 to 2028, despite a rise in subscriptions in mobile data and fixed broadband segments, according to GlobalData.

GlobalData projects that total mobile subscriptions in the country will increase at a CAGR of 1.4% over 2023 to 2028, in line with the continued rise in mobile internet subscriptions and smartphone adoption levels, increase in multi-SIM ownership, and growth in M2M/IoT subscriptions.

According to Aasif Iqbal, Telecom Analyst at GlobalData, even though more people are signing up for mobile and home internet services, consumers are spending less because competition has driven companies to offer discounts and special prices to attract customers to their banners.

The main reason for this drop is that the companies are offering discounts and special prices to attract customers in a competitive market.

Fixed broadband subscriptions are expected to grow at a CAGR of 1.8% over the forecast period, supported by a continued rise in FTTH/B subscriptions on the back of government initiatives to further expand and upgrade fibre broadband connectivity in the country. 

In the pay-TV segment, IPTV will be the sole platform to deliver pay-TV services in Singapore during the forecast period. IPTV subscriptions are estimated to decline at a negative CAGR of 5.3% from 2023 to 2028, due to the accelerated migration of customers to OTT services.

“Whilst operators in the mature mobile services segment could focus on service differentiation and tap potential opportunities in the M2M/IoT segment to drive growth, operators in the fixed broadband segment could focus on further expansion and upgradation of fibre-broadband services and devise innovative pricing models and bundled plans to drive growth. In the declining pay-TV service segment, operators may have to build a stronger content library and devise competitive pricing plans to stave off competition from the OTT service platforms and stay relevant in the market,” Iqbal said.