South Korea expects a boost in mobile data service revenue until 2028

Thanks to the growing demand and subscriptions for 5G networks.

Mobile data service revenue in South Korea is expected to increase at a compounded annual growth rate (CAGR) of 17.6% by 2028 amid growing demand for connectivity in the country.

According to data and analytics firm GlobalData, the anticipated increase is driven by growing data consumption and 5G subscriptions that yield a higher mobile data average revenue per user (ARPU).

In the South Korea Telecom Operators Country Intelligence Report, GlobalData Telecom Analyst Aasif Iqbal said 4G services will still have the largest share of total mobile subscriptions in South Korea in 2023.

However, Aasif added that the share of 4G subscriptions will “decline drastically” between 2023 and 2028 due to the continuous migration of subscribers from 4G to 5G networks.

“5G share will increase rapidly to reach 78.7% in 2028, supported by a strong focus on 5G network expansions and service improvements by telcos and the local government. The South Korean government aims to ensure consistent 5G access throughout the country, including rural areas and remote islands, by the end of 2024,” he explained.

For the fixed communication services segment, the same report revealed that voice service revenue will decline over the forecast period due to a decrease in fixed voice service ARPU and subscription losses in both the voice over Internet Protocol (VoIP) and circuit-switched segments. 

Fixed broadband service revenue, on the other hand, will grow albeit marginally at a CAGR of 0.4% during the forecast period, primarily supported by growth in FTTH/B service adoption.

Aasif also noted that SK Telecom will continue to lead the mobile services market in terms of subscriptions throughout the forecast period, thanks to its discounted monthly pricing along with unlimited and shareable data options. The company is also focusing on M2M/IoT services to drive opportunities in the enterprise segment.