APAC fixed communications service revenue expected to reach $406.2bn in 2026

APAC fixed communications service revenue expected to reach $406.2bn in 2026

By Ken Ko, Managing Director at Broadband Forum

The Covid-19 pandemic demonstrated the importance of reliable broadband and connectivity as it enabled work and study to be completed from home. Operators and governments across the world have prioritized the improvement of fixed fiber networks to provide the population with the most reliable and high-speed connectivity.

Asia Pacific (APAC), the most populous region across the globe, is making waves in the deployment of fiber networks and is one of the key global growth markets. According to Global Data’s latest Asia-Pacific Regional Fixed Communications Forecast, the total fixed communications service revenue is expected to grow at a compound annual growth rate (CAGR) 1.7% to reach $406.2 billion in 2026

FTTH/B is set to dominate APAC service revenue

Fiber-to-the-Home/Building (FTTH/B) service is set to cement its position as the leading fixed broadband technology in the APAC market and is predicted to account for 87.6% of total fixed broadband lines in the region by 2026.

China leads the overall APAC fixed broadband services market, with 98% of its broadband subscriptions on fiber optic lines by the end of 2021. Despite the ongoing fiber roll-outs across the region, its vast geographic expanse and diversity is still proving to be a challenge. Fixed broadband account penetration reached just 18% of the APAC region by year-end 2021.

The key drivers in the APAC region

Fiber access network deployments are at an all-time high. As PON technology has developed, demand for superfast fiber networks has grown alongside it. 10 Gigabit Symmetrical PON (XGS-PON) deployments are forecasted to grow in the coming year.

In the APAC region, more advanced countries such as New Zealand and China are upgrading their networks to 10G-PON standards. 25G PON is also being deployed by some operators in the APAC region today.

Trialing emerging technologies

Earlier this year, Nokia and AIS Fibre announced the first trial of its 25G PON solution in Asia. AIS Fibre trialed the technology in Thailand, using its existing OLTs, which had already been rolled out nationwide. As new applications like virtual reality gaming and hologram calls enter the mainstream, other operators will follow suit to offer higher speeds and low latency. This technology can also be used for 5G backhaul, which will become increasingly important as the influence of 5G technologies evolves and expands in the APAC region.

The advent of 5G is seen by many operators as a prime opportunity to converge their fixed and mobile networks. The benefits include a seamless, access-independent service experience, multi-access connectivity, and a streamlined set of network functions required to operate their networks.

Standards are playing a key role in the evolution of 5G, which, in turn, is impacting the access network more than ever before. Broadband Forum released three specifications during the completion of Phase 2 of its 5G work, converging the wireless and wireline networks to provide a seamless 5G experience no matter how consumers are connected. The latest Broadband Forum 5G convergence standards will increase the service capabilities of the network for operators while providing them with more opportunities to transition from a legacy to 5G network.

Raising the standards

The APAC markets have distinct differences and drivers when evaluating the future broadband network requirements but in addition many common network and service requirements to the global broadband ecosystem.

Broadband Forum is hosting its dedicated Asia and Australasia vBASe and is inviting you to be part of the discussion on the advancements in technology, specific market demands and connected subscriber service needs when delivering the future broadband experience.

The two-day event will host a number of guest speakers from across the industry, discussing ‘The Future of the Broadband Network & Requirements’ and ‘The Connected Home and Subscriber Services’.

You can register for vBASe APAC 2022 here.