M2M, IoT to boost mobile service revenue in South Korea: Study

The study forecast that 5G subscriptions in South Korea are estimated to represent 85.1% share of the total mobile subscriptions in 2028

Mobile services revenue in South Korea are forecast to increase from $21.1 billion last year to $25.1 billion in 2028 at a compound annual growth rate (CAGR) of 3.5% during the period, according to a recent report by GlobalData.

The report stated that the surge in mobile services revenues will be mainly driven by robust growth in M2M/IoT subscriptions and the mobile data services segment.

GlobalData’s latest South Korea Mobile Broadband Forecast showed that M2M/IoT subscriptions in the Asian nation are expected to surge at a CAGR of 10.9% between 2023 and 2028.

While mobile voice service revenues in the country will continue to decline, mobile data service revenue is set to grow at a CAGR of 6.5% between 2023 and 2028, mainly due to the growth in the higher-ARPU 5G subscriptions, according to the report.

Srikanth Vaidya, telecom analyst at GlobalData, said: “The average monthly mobile data usage in South Korea is expected to increase from 14.6 GB in 2023 to 30.5 GB in 2028, driven by the growing consumption of online video and social media content over smartphones, thanks to widespread availability of 5G services.”

GlobalData also forecast that 5G subscriptions in South Korea are estimated to represent 85.1% share of the total mobile subscriptions in 2028. This growth will be driven by the growing demand for high-speed mobile internet services, growing M2M/IoT applications and the initiatives of operators and the government to boost 5G infrastructure in the country.

“SK Telecom led the mobile services market in South Korea in terms of mobile subscriptions in 2023. It is expected to retain its leading position through 2028, primarily driven by its strong focus on the M2M/IoT segment and accelerated pace of its 5G network expansions,” the analyst added.

Local carriers SK Telecom, LG Uplus and KT currently offer 5G services nationwide.

Newcomer Stage X, which has been awarded spectrum that will enable it to be Korea’s fourth mobile carrier, plans to launch nationwide mobile network services in the first half of 2025.

Stage X will be investing 612.8 billion won ($462 million) to deploy its 28 GHz 5G network across South Korea. The telco plans to build 6,000 base stations, which is the mandated installation standard for the 28 GHz frequency network.

Stage X will provide services via Wi-Fi with the 28 GHz frequency. It plans to build 28 GHz-based Wi-Fi in densely populated facilities, including concert halls, hospitals, schools and airports.

Stage X is a consortium that is integrated by Stage Five, a communications affiliate of tech giant Kakao Corp. and other unidentified companies. The new operator will be the only service provider in the 28 GHz band during an initial three-year period in order to be able to secure its market position, according to previous reports.