GlobalData : Discounted tariffs to drive adoption of multi-play bundles in South Korea over 2020-2025, forecasts GlobalData

04 Jun 2021
Discounted tariffs to drive adoption of multi-play bundles in South Korea over 2020-2025, forecasts GlobalData Posted in Technology

The total multi-play service household penetration in South Korea will grow at a compound annual growth rate (CAGR) of 2.2% between 2020-2025, driven by discounted pricing strategy adopted by operators to attract new subscriptions, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData's South Korea Multi-play Forecast Model reveals that, multiplay service revenue in South Korea is expected to grow at a compound annual growth rate (CAGR) of 3.5% between 2020-2025, to reach US$7.1bn by the end of 2025, driven by growing adoption of triple-play and quad-play bundles which yield higher average revenue per user (ARPU).

Aasif Iqbal, Telecom Analyst at GlobalData, says: 'Although double-play will remain the leading multi-play service category through 2025, its share of total multiplay households will drop from 45.9% in 2020 to 36.6% by year-end 2025, due to growing popularity of triple-play and quad-play bundles as operators increasingly offer discounted prices for these bundles.'

The adoption of multi-play services across South Korea will also be supported by the widespread availability of fixed broadband infrastructure and increasing broadband penetration of population, which is expected to reach 90% by the end of 2025.

KT Corporation boasts the largest multi-play household accounts and will remain the market leader during 2020-2025, followed by LG Group. KT Corporation is constantly promoting discounted plans on its multi-play bundles to attract new customers. For instance, it is currently offering plan inclusive of 1Gbps fixed broadband service and pay-TV for KRW46,200, down from its original price of KRW80,300/month.