NTT Docomo will continue to lead the mobile market in Japan over 2019-2024, due to its focus on mobile network modernization and expansion, according to GlobalData.
This indicates that SoftBank, the third largest mobile operator, and KDDI, the second largest telecoms, will not be able to take on NTT Docomo in the next four years. Rakuten, which is the fourth operator to enter the market, will not be able to pose challenges on the market leader.
NTT Docomo is working with satellite equipment manufacturing company Gilat Satellite Networks for LTE satellite backhaul to create robust network coverage and expand its LTE footprint. The company is also focusing on developing new 5G use cases for industrial applications.
NTT Docomo and KDDI are already testing 5G networks. GlobalData said it expects the commercial 5G launch will happen in 2020 in Japan.
The total mobile services revenue in Japan is expected to increase at a compound annual growth rate (CAGR) of 4.4 percent from $70.6 billion in 2019 to $87.7 billion in 2024, led by mobile data services segment, according to GlobalData.
GlobalData’s Japan Telecom Operators Country Intelligence Report predicts that mobile voice and mobile messaging revenue will decline over 2019-2024 while mobile service revenue will increase at a CAGR of 7.5 percent over the same period.
Growth in mobile data service revenue will be primarily driven by increase in data average revenue per user (ARPU) and growing consumption of mobile data services on the back of increasing consumption of high bandwidth video and social-media applications.
“4G will remain the leading mobile technology in Japan during 2019-2024 but will see a drop in its share of total subscriptions from 71.5 percent in 2019 to 63.3 percent by 2024. This is primarily due to the anticipated rise in subscriber migration from 4G to 5G services over the coming years,” Deepa Dhingra, telecom analyst at GlobalData, said.