The total fixed services revenue in Vietnam is expected to grow at a compound annual growth rate (CAGR) of 0.9% from US$1.5bn in 2019 to US$1.6bn in 2024, supported by the steady rise in the adoption of fixed broadband services, according to GlobalData, a leading data and analytics company.
GlobalData’s Vietnam Telecom Operators Country Intelligence Report predicts that revenues from fixed voice services will decline at a CAGR of 6.1% over 2019-2024 due to continuous drop in circuit-switched subscriptions and decline in fixed voice average revenue per user (ARPU) levels.
Fixed broadband service revenue, on the other hand, will grow at an encouraging CAGR of 2.2% over 2019-2024, which will help offset decline in the fixed voice revenues and keep the overall fixed service revenue growth positive through the forecast period. Fixed broadband revenue will be mainly driven by the steady rise in fiber-to-the-home/business (FTTH/B) and cable subscriptions over the forecast period.
Deepa Dhingra, Telecom Analyst at GlobalData, says, “Fixed broadband ARPUs will however drop over the 2019-2024 period, as service providers bring new promotional offers to drive broadband service adoption. Fixed broadband ARPU will drop from US$7.66 in 2019 to US$6.09 by 2024-end, while fixed voice ARPU will drop from US$1.31 in 2019 to US$0.94 by 2024.
“VNPT will continue to lead the broadband segment over 2019-2024, driven by its strong foothold in the FTTH segment, and ongoing investments in cable network. The operator has been investing in underground cable expansions in Hanoi city to expand broadband connectivity.”