The report stated that the overall mobile services revenues in Singapore are forecast to expand at a CAGR of 3% during the 2023-2028 period
The increasing adoption of 5G services in Singapore is expected to boost its mobile data service revenue growth, which will in turn drive the country’s overall mobile service revenue to reach $2.1 billion by the end of 2028, according to a new report by data and analytics company GlobalData.
The report highlighted that the country’s overall mobile services revenues are forecast to expand at a compound annual growth rate (CAGR) of 3% during the 2023-2028 period.
Mobile data service revenue will increase at a CAGR of 4.7% between 2023 and 2028, driven by the growing consumption of mobile data services and the projected rise in higher-ARPU yielding-5G subscriptions as 5G services become more widely available across Singapore.
Kantipudi Pradeepthi, telecom analyst at GlobalData, said: “Though 4G will remain the leading mobile technology, in terms of subscriptions, until 2024. 5G service will see its subscriptions surpass 4G subscriptions in 2025, occupying an impressive 88% share of the total mobile subscriptions by the end of 2028. This growth in 5G subscriptions will be primarily driven by rising demand for high-speed data services, ongoing 5G network expansions by mobile network operators (MNOs), and a subsequent increase in the availability of 5G services across the nation,” he said.
GlobalData stated that local carrier Singtel will continue to dominate the mobile services market in terms of subscriptions through 2028, given its strong position in both the prepaid and postpaid segments and its focus on 5G network developments across Singapore.
“Singtel’s market position is also supported by its strategy to offer data-centric plans with additional benefits and loyalty programs. Moreover, the operator is actively seeking partnership and collaboration opportunities with system integrators, app developers, IoT solution providers, and other ecosystem partners to develop new 5G solutions and use cases targeted at its enterprise customers,” said Pradeepthi.
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Hong Kong’s mobile services market remains stagnant
In a separate report, GlobalData noted that the mobile services market in Hong Kong faces stagnation, with limited overall revenue growth projected despite the anticipated surge in the adoption of 5G services.
The report noted that the market is expected to witness only marginal expansion, from $2.7 billion in 2023 to $2.9 billion in 2028, despite the boost in 5G adoption, forecasts GlobalData.
Subba Reddy, telecom analyst at GlobalData, said: “The growth in the data service revenue can be primarily attributed to the projected rise in 5G subscriptions, which is largely due to the efforts of telecom operators to promote and expand their 5G services throughout the country.”
The report stated that 4G services currently account for 61% of the total mobile subscriptions in Hong Kong, while 5G subscriptions are projected to grow at a CAGR of 18.9% between 2023 and 2028 and will represent 79% of total subscriptions in 2028.