Mobile data service revenue in Singapore will increase at a CAGR of 7.2% between 2022 and 2027
The growing adoption of 5G services in Singapore is expected to boost the mobile data segment in the country, which in turn is set to drive mobile service revenue at a CAGR of 3% from 2022 to 2027, according to analytics company GlobalData.
According to the report, mobile service revenue in Singapore is projected to reach $2.1 billion by the end of the forecast period.
According to GlobalData’s ‘Singapore Mobile Broadband Forecast’ report reveals that mobile voice service revenue will decline at a CAGR of 4.6% over the forecast period due to the widespread consumer shift towards over-the-top (OTT) based communication platforms and the subsequent decline in voice service average revenue per user (ARPU) levels.
Meanwhile, mobile data service revenue will increase at a CAGR of 7.2% between 2022 and 2027, driven by the growing consumption of mobile data services and projected rise in higher-ARPU yielding-5G subscriptions as 5G services become more widely available across Singapore.
Hrushikesh Mahananda, telecom research Analyst at GlobalData, said: “The average monthly data usage will increase from 9.4GB in 2022 to 23.6GB in 2027, driven by the increasing consumption of online video and social media content over smartphones, on the back of 5G network expansion and thanks to data-centric offers extended by MNOs with their 5G service plans.
The report also noted that 5G subscriptions will surpass 4G subscriptions in 2025 and is expected to account for 76% of total mobile subscriptions by the end of 2027. This growth in 5G subscriptions will be chiefly driven by the ongoing 5G network expansions by MNOs and increase in the commercial 5G adoption to support M2M/IoT implementations and smart city applications.
“Singtel will continue to dominate the mobile services market in terms of subscription through 2027, given its strong focus on 5G network developments and expansion across the country. 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 customer,” the analyst added.
In July 2022, Singtel said its 5G Standalone network covered over 95% of the country’s territory. Singtel’s 5G SA network already covers more than 1,300 outdoor locations and over 400 building across Singapore.
Singtel had announced the launch of its 5G SA network in the country in May of 2021. The carrier had partnered with Korean company Samsung to launch 5G SA network, which runs on 3.5 GHz spectrum.
Singtel had initially launched its 5G Non-Standalone (NSA) network in September of 2020, using spectrum in the 3.5 GHz frequency as well as existing 2.1 GHz spectrum.
Meanwhile, rival telco M1 Limited previously announced that all its mobile handset plans will come with 5G connectivity.
M1 noted that its 5G SA network currently covers about 90% of Singapore including CBD, Marina Bay Financial Center, key town centers and high data usage areas such as Ang Mo Kio, Bishan, Chinatown, Clementi, Orchard Road, Pasir Ris, Paya Lebar, Sengkang, Tampines and Woodlands.
M1 Limited had launched a commercial trial of its 5G Standalone network in July 2021. The telco said it was expecting to reach nationwide coverage with its 5G Standalone network during this year.
