Fixed communication service revenue to grow at 3.1% CAGR in 2028

The total fixed communication services revenue in Saudi Arabia is forecast to increase at a compounded annual growth rate (CAGR) of 3.1% from $2.4 billion in 2023 to $2.8 billion in 2028, primarily driven by the strong growth in the fixed broadband segment, according to GlobalData, a leading data and analytics company.

GlobalData’s latest Saudi Arabia Fixed Communications Forecast (Q3 2023) reveals that the fixed voice service revenue will decline at a CAGR of 10.9% over 2023-2028. This will be due to a drop in circuit-switched subscriptions and a decline in fixed voice average revenue per subscriber (ARPS) levels as a result of the increasing preference for mobile/internet-based communications and free voice minutes bundled as a part of operators’ fixed bundled plans.

Srikanth Vaidya, Telecom Analyst at GlobalData, comments: “Fixed broadband services revenue, on the other hand, will increase at a healthy CAGR of 8.6% during 2023-2028, driven by the steady growth in broadband subscriptions, especially higher-ARPS yielding fiber-broadband subscriptions.”

Vaidya adds: “Fiber lines accounted for a significant 56% share of the total fixed broadband lines in Saudi Arabia in 2023, which will increase to about 67% by 2028, supported by government and operator investments in fiber network infrastructure and FTTH service expansions.”

Rising demand for high-speed internet services and competitively priced fiber-broadband plans from operators with benefits like cost-effective multi-play plans are also expected to drive fiber broadband service in the country during the forecast period. For instance, STC is offering 500 Mbps FTTH plan with unlimited data, unlimited fixed voice telephony, and subscription to SVoD platform, Shahid VIP, and free installation of a fixed broadband modem for SAR 402.5 ($107.3) per month.

Vaidya concludes: “STC will lead the fixed voice services segment in terms of subscriptions through 2028, supported by its strong position in the growing VoIP service segment. The operator will also top the fixed broadband services market by subscriptions with its strong position in the FTTH and FWA service segments.” GlobalData