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The FTTx networks and services for mobile operators in emerging Asia–Pacific: assessing the opportunity

The FTTx networks and services for mobile operators in emerging Asia–Pacific: assessing the opportunity

The central problem for mobile network operators (MNOs) in the emerging Asia–Pacific (APAC) region is stagnating revenue in countries where the opportunity to attract new, first-time subscribers is limited and the value of the mobile voice market is declining. This report discusses investment in fixed broadband as a possible solution to this problem.


About this report
Executive summary
Slowing growth in mobile service revenue and strong growth in mobile traffic is placing the emerging APAC MNO business model under pressure
Forecast growth in fixed broadband and IPTV connections could deliver new sources of revenue for MNOs in emerging APAC
Recommendations
RATIONALE FOR MNOs TO LAUNCH FIXED BROADBAND
Fixed broadband and IPTV are markets that are set to experience strong growth
Using cellular technologies for home broadband connections will become increasingly unsustainable in future years
Connected TVs have also acted as a driver for growth in fixed data traffic and represent an opportunity for MNOs that roll out FTTH/B
MNOs have a number of options to enter the fixed broadband market, but building FTTH/B networks has a number of important advantages
Building FTTH/B networks may be more of an attractive option for MNOs in emerging APAC than for those in other regions
Fixed broadband ARPU in emerging APAC does not prevent FTTH/B roll-out
MNOs should consider deployment models that reduce the risks that rolling out fibre might involve
NETWORK-RELATED SYNERGIES
Building up a customer base initially through wireless technologies could be a first step for MNOs before building FTTH networks
Rolling out an FTTH/B network could also benefit MNOs’ Wi-Fi strategies pan>
FTTH/B infrastructure fits well with future mobile network requirements
RETAIL-RELATED SYNERGIES
Building FTTH/B networks allows MNOs to offer fixed/mobile bundles but such an approach may not always be desirable
Fixed/mobile bundles could be a way to increase the proportion of postpaid SIMs in the emerging APAC region
True has successfully used fixed/mobile bundles to drive postpaid penetration in Thailand
FTTH/B networks could provide significant synergies with MNOs’ over-the-top content strategies
Content-based arguments for rolling out FTTH/B networks are stronger in the emerging APAC region than elsewhere
APPENDIX
ABOUT THE AUTHORS AND ANALYSYS MASON
List of figures
Figure 1: Fixed service revenue in emerging APAC is set to grow, driven by increasing broadband revenue, and MNOs can take advantage of this opportunity
Figure 2: Mobile service revenue and cellular data traffic, emerging Asia–Pacific, 2015–2019
Figure 3: Fixed broadband and IPTV connections, emerging Asia–Pacific, 2015–2020
Figure 4: Fixed broadband penetration of premises by selected country, end of 2015 and end of 2020
Figure 5: Maximum cellular data allowance by selected MNO, emerging Asia–Pacific, December 2015
Figure 6: Fixed Internet traffic per connection, emerging Asia–Pacific, 2015–2020
Figure 7: Examples of available OTT video services, emerging Asia–Pacific, 2015 and 2016
Figure 8: Advantages and disadvantages of different strategic options for MNOs in emerging Asia–Pacific to enter the fixed broadband market
Figure 9: FTTx homes passed costs by selected operator
Figure 10: DOCSIS3.0 cable coverage of homes passed by selected market, end 2015
Figure 11: Ratio of FTTH/B homes passed costs to fixed broadband ARPU by selected country, emerging Asia–Pacific, 3Q 2015
Figure 12: Globe Telecom's LTE and wireline broadband packages by speed and data cap, October 2015
Figure 13: Deutsche Telekom's maximum download speeds offered with hybrid fixed/mobile connections
Figure 14: The impact of fixed–mobile bundles on mobile retail revenue growth
Figure 15: Postpaid share of active SIMs before and after converged fixed/mobile bundles, selected markets
Figure 16: Postpaid share of active SIMs (excluding M2M), emerging Asia–Pacific, end 2015
Figure 17: True's postpaid subscribers and postpaid share of the subscriber base, 1Q 2013–2Q 2015

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