Telecom and pay-TV revenues to boom in Japan

The telecom and pay-TV services revenue in Japan will grow at a CAGR of 2.2 percent over the 2017-2022 forecast period, according to GlobalData.

Japan has 168 million subscriptions in 2017, making the country the fourth largest telecom market in the Asia-Pacific (APAC) region.
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The GlobalData report on the Japanese communications market said the usage of mobile data will more than double over the forecast period, reaching 9.9GB per month by 2022 fuelled by rising consumption of mobile video and social media content over smartphones.

“Mobile data revenue will rise and play a major role in the growth of total telecom service revenue to 2022 as a result of rising smartphone penetration, growing adoption of 4G LTE/LTE-A services and higher value data packs,” Sandeep Kolakotla, telecom analyst at GlobalData, said.

5G services during the Tokyo Olympics in 2020 will create major opportunities for investors and vendors in the Japanese telecom market.

Mobile voice usage will continue to drop due to rising adoption of over-the-top (OTT)-based communications.

Adoption of fiber to the home/building (FTTH/B), cable Internet subscriptions and growing average revenue per line (ARPL) for broadband connections will drive fixed broadband revenue, according to the report.

Growing Internet protocol television (IPTV) subscriptions and operator investments in high-definition (HD) / ultra-high-definition (UHD) content technologies will boost revenue growth in pay-TV market.