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China multiplay service revenue to increase at 1.9% CAGR through 2027, forecasts GlobalData

Multiplay service revenue in China is set to increase at a compound annual growth rate (CAGR) of 1.9% from $1.7 billion in 2022 to $1.9 billion in 2027, in line with the continued rise in the number of multiplay households in the country and growth in the average monthly multiplay household spending, according to GlobalData, a leading data and analytics company.

GlobalData’s China Multiplay Forecast Model (October 2022) reveals that the average monthly household spend on multiplay service bundles will increase from $33.4 in 2022 to $33.8 in 2027, primarily driven by the increasing adoption of higher value tripleplay and quadplay service bundles.

Well established fixed network infrastructure and relatively high fixed broadband household penetration in the country allow telcos to promote a wide range of multiplay service bundles built around high-speed internet service, thus driving growth in the market.

As operators’ package additional benefits such as unlimited Internet and access to video-on-demand platforms to enhance their bundled service offerings, the average monthly household spend on multiplay service bundles is also expected to increase, thereby driving the overall revenue growth.

Sarwat Zeeshan, Telecom Analyst at GlobalData, says: “While doubleplay services will account for the majority of multiplay households in China during the forecast period, its share of the total will decline from 64% in 2022 to 60% in 2027. On the other hand, tripleplay and quadplay services’ share of total multiplay households will grow through 2027.

Quadplay adoption will stand to gain over the forecast period owing to growth in fixed mobile convergence household penetration, which will increase significantly from 13% in 2022 to 34% in 2027.

All major operators from the country, including China Mobile, China Telecom, and China Unicom, are leveraging their widespread, high-speed fiber-to-the-home (FTTH) networks to accelerate multiplay services adoption and increase revenue-generating units (RGUs). Global Data

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