Commoditization in fixed telecoms

Are market shares converging due to price competition, not differentiation? Are ARPA spreads contracting due to lack of real differentiation? We studied 50+ markets and are inclined to answer: Yes to both. But take a look at the data yourself.

Declining ARPAs position industry on the edge of commoditization

Competitive pressure in the global fixed telephone industry has been rather constant, with no significant changes in the market share spread since 2012. However, telecommunication providers across the globe have seen a continuous trend towards “on the edge” commoditization as ARPA spread globally decreased. A vast majority of countries remain differentiated for now. However, ARPA pressures have driven the competitive intensity higher and a continued trend towards commoditization.  

Strategy&’s annual commoditization tracker analyzes the state of play in markets across the globe by looking at two key metrics: changes in the spread between fixed operators with the largest and smallest share of each market’s subscribers, and in the spread between those with the highest and lowest average revenue per account.

Fixed commoditization trends by market


Please note: 2021 is based on Q1 and Q2 data.
ARPA: Average Revenue Per Account
Source: Analysys Mason; Strategy& research and analysis.


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Dr. Florian Gröne

Dr. Florian Gröne

Global Telecoms Advisory Leader, Strategy& US

Udayan Gupt

Udayan Gupt

Director, Strategy& US

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