Singapore's mobile service revenue is projected to reach more than USD 2.1 billion by the end of 2028, with a compound annual growth rate (CAGR) of 3% from 2023 to 2028, due to the increasing adoption of 5G services in the country.
According to GlobalData’s Singapore Mobile Broadband Forecast (Q1-2024), mobile voice service revenue is expected to decline at a 5.9% CAGR during the forecast period, due to the growth of over-the-top (OTT) communication platforms.
Additionally, there is a projected increase in mobile data service revenue, with a compound annual growth rate (CAGR) of 4.7%. This growth is attributed to rising demand for mobile data services and the anticipated surge in higher Average Revenue Per User (ARPU) generated by 5G subscriptions.
Singapore’s 5G Expansion
The expansion of 5G services in Singapore is poised to catalyze this growth trajectory by significantly improving the accessibility and adoption of 5G technology across various sectors. As 5G networks offer unprecedented speed, reliability, and low latency, they enable a plethora of innovative applications and services, ranging from ultra-high-definition video streaming to immersive augmented reality experiences.
This heightened connectivity empowers businesses to deploy advanced IoT solutions, autonomous vehicles, and smart infrastructure, driving efficiency and productivity gains. Moreover, the seamless connectivity facilitated by 5G encourages consumers to engage more extensively with data-intensive activities such as streaming, gaming, and video conferencing, thereby fueling an uptick in mobile data usage.
Consequently, the synergy between the expansion of 5G infrastructure and the burgeoning demand for cutting-edge digital services is anticipated to propel mobile data service revenue to new heights in Singapore. The expansion of 5G services in Singapore is expected to drive this growth, as it enhances the availability and adoption of 5G technology, further stimulating mobile data usage and revenue.
“Though 4G will remain the leading mobile technology, in terms of subscriptions, until 2024, 5G services will see its subscriptions surpass 4G subscriptions in 2025, occupying an impressive 88% share of the total mobile subscriptions by the end of 2028,” noted Kantipudi Pradeepthi, Telecom Analyst at GlobalData.
Maintaining Market Dominance
Pradeepthi explained that the surge in 5G subscribers can be attributed to the growing demand for high-speed data services, the continuous building of 5G networks by mobile network operators (MNOs), and the subsequent availability of 5G services across the country.
Singtel is expected to continue its lead in the mobile services industry through 2028 due to its strong presence in both prepaid and postpaid segments, as well as its unyielding efforts which are focused on developing and expanding 5G networks in Singapore.
Moreover, Singtel’s proactive partnerships and collaboration opportunities with system integrators, app developers, IoT solution providers, and other ecosystem partners will also help the company maintain its market dominance.
