Japan Telecommunications Industry Report 2021-2026

DUBLIN, 25 August 2021 / PRNewswire / – The “Report on the telecommunications industry in Japan – 2021-2026” the report was added to ResearchAndMarkets.com offer.

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This report provides revenue analysis and market forecast as well as statistics of the Japan telecom industry including market size, 5 year forecast, market insights, major telecom trends, 5G, digital infrastructure and also includes the following:

  • Global telecommunications market by major operators

  • Profile of telecommunications operators, revenues and EBITDA mix

  • Overview and Forecast of Mobile Subscriber Market and Revenue

  • Spectrum Fund

  • Overview of the IoT market

  • Overview and Forecast of Broadband Subscriber Market and Revenue

  • Digital infrastructure (fiber, telecommunications towers, data centers, submarine cables)

  • Telecommunication tower market analysis and forecast

  • Themes / Opportunities related to 5G, M&A and e-Commerce

  • Database of telecommunications mergers and acquisitions transactions

Why Should You Buy The Japan Telecommunications Industry Report:

  • Take advantage of the latest market opportunities

  • Understand the threats to your operations and investments and protect your business from future risks

  • Get insight into emerging trends that are supporting, improving or disrupting your business in the market

  • Get a complete view of the competitive landscape to assess your position in the market.

  • Forecasting as a key element of successful budgeting and strategic planning in the telecommunications market

  • Target business opportunities and risks in the telecommunications sector through our analyzes of the latest industry trends, regulatory changes and major transactions, projects and investments

  • Evaluate the activities, strategy and market position of your competitors, partners and customers through our operator profiles

The Japan Telecommunications Industry Report, 2020-2025 includes a comprehensive examination of the Japanese market dynamics, market size, market forecast, analysis, information and key trends.

Japan Telecommunications Industry Report Overview

Globally, the telecommunications industry is proving to be a basic and essential infrastructure service for national economies, with data infrastructure becoming critical in a connected world and will likely increasingly attract a new class of business. ‘investors such as large infrastructure funds. The publisher expects the Japanese telecommunications industry to remain stable thanks to the defensive nature of the industry, amid political uncertainties and uncertain economic prospects due to the COVID-19 pandemic.

The Japanese telecommunications market is the third largest market in the world in terms of turnover with three major fixed and mobile network operators who have invested heavily in fiber optic towers and infrastructure over the past two decades despite a global market supported by low economic and demographic growth.

Growing mobile phone penetration and high adoption of fixed broadband among households will fuel future growth over the next five years.

Following the expansion of the market over the past 5 years, forecasts suggest moderate revenue growth through 2025, with the Covid-19 pandemic, the waning impact of declining voice and SMS revenue legacy, Rakuten’s entry into the market and low population growth.

Strategic and economic competition between Japan and China is at the center of cutting-edge technology competition and the future of global data and communications. For most of the developed countries in the region, obtaining strategic and economic power is highly dependent on technological ancestry, especially in data and communications.

Investment investments

The Capexes of Japanese operators are cyclical with a mobile deployment leading to investments in line with the growth in operators’ turnover. Capex investments peaked between 2012 and 2014, while the three operators built their respective 4G mobile networks. Investments will increase again from 2020 to 2025, as mobile operators invest in 5G. Japan sees 5G as the backbone of a wide range of technological advancements, including autonomous vehicles, smart cities and the Internet of Things. The three mobile operators have launched 5G services in March 2020. The Capex / GDP ratio increased between 2012 and 2014 and started to decline and stabilize in 2018 and 2019.

The author predicts an increase in capital spending throughout 2020 just by installing more 5G base stations in all cities, thus increasing from Japan National deployment of 5G and consolidation of its leadership on the 5G network in terms of subscribers and availability in the country.

Operator profiles

The Japanese three-player mobile market is a remarkably stable market, but it is about to be rocked by the fourth-largest entrant – Rakuten Mobile – looking to keep up with the successful launch of new entrants such as Free. in France and Reliance Jio in India. Rakuten has set itself the ambitious goal of being the first cloud-native mobile network.

Between 2014 and 2019, NTT and Softbank lost revenue and EBITDA share to KDDI in the past six years, Softbank lost both revenue and EBITDA share, while measures cost reduction began to be applied in 2019 with improved EBITDA and cash flow.

Mobile subscribers and income

The average annual growth in mobile revenues was lower (1%) than the growth in mobile subscriptions (4.7%) during the period 2014-2019, highlighting the structural challenges facing mobile operators. Declining voice and SMS revenues are only partially offset by wireless data monetization putting pressure on ARPU, compounded by bundled discounts to stem churn.

IoT connections are a major growth engine for mobile operators, slower growth in mobile subscriptions will exert long-term pressure, intensifying competition for the three mobile operators who are striving for fewer new customers.

According to our benchmark study on mobile data pricing, Japan recorded one of the largest cost per GB reductions in the past 3 years, while India has the lowest rate in the world with just pennies per GB.

With a launch slated for 2020, many operators are looking to Rakuten Mobile’s pioneering strategy of deploying its network using a cloud-native mobile network plan to lower its deployment costs.

The traditional telecommunications model is becoming increasingly difficult to sustain amid declining operating margins and continued expectations for cheaper services and greater inclusion of value.

The publisher predicts that Rakuten could capture up to 15m subscribers in 3 years by offering lower prices, e-commerce bundles and other lifestyle services to its 100 million existing Rakuten customers, while KDDI and, to a lesser extent, NTT and Softbank have already launched into such an adventure.

The author predicts that 5G mobile subscribers will account for almost 68% of all subscribers by 2026, 4G will account for around 32% of all connections while 3G will be shut down by the end of 2023.

Broadband Subscribers – FTTH Push to Gigabit Speeds

After more than 20 years of investments in fiber infrastructure, Japan has one of the highest FTTH penetrations in the world as well as one of the most advanced consumer broadband products offering speeds of up to 10 Gbps. However, most people use 100 Mbps plans which are mostly bundled with mobile services by the three dominant players, NTT, KDDI and Softbank.

Fixed broadband penetration is expected to increase modestly as from Japan investments in full fiber networks are now reaching maturity with affordable plans and increased penetration of broadband in households which are tending towards saturation.

Themes – Telecom Infrastructure / 5G / M & A / Infrastructure

Infrastructure funds, pension funds, and government funds attribute high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centers, submarine cables, and fiber infrastructure.

Investment funds attribute high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centers, submarine cables and fiber infrastructure. This report presents some real market examples of how investors view and value these investments with real industry examples and EV / EBITDA benchmarks and benchmarks.

Our analysis of the Japan Telecoms Industry Report transaction database highlights the dearth of inbound (domestic) transactions in the Japanese telecommunications services market, with Softbank’s largest transactions entering the mobile market and consolidating its position in acquiring smaller operators. However, in the short to medium term, the mobile telecom industry is unlikely to see any corporate activity with Rakuten entering the market. Softbank Group sells shares in its mobile arm to raise funds and strengthen its struggling balance sheet, with the group still owning around 62% of its mobile unit.

The arrival of 4G has moved the internet from our desktops to our palms and pockets, 5G could transform the network from something we carry to something that takes us virtually (augmented reality or virtual reality) or into reality. (autonomous vehicles), 5G results and benefits beyond rapid connectivity remain largely unknown in terms of business models, required investments and timing.

Main topics covered:

1 Key statistics

2 Impact of COVID-19

3 Global telecommunications market, 2014-2026

4 Profile of telecommunications operators

5 Mobile market

6 Broadband market

7 Investments in fixed telecommunications infrastructure

8 Infrastructure landscape of telecommunication towers in Japan

9 Themes / Opportunities

10 Database of Telecommunications Mergers and Acquisitions Transactions

11 Methodology

Companies mentioned

For more information on this report, visit https://www.researchandmarkets.com/r/gqjxsi

Media contact:

Research and markets
Laura Wood, senior
[email protected]

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