Moody’s Investor Service predicted revenue growth for operators across Asia Pacific will recover to match GDP gains in the region, supported by increased data and broadband consumption along with consolidation which reduces competition.

The rating agency forecasts revenue to increase 4 per cent to 4.5 per cent over the next 12 months to 18 months, the highest since 2016 excluding a spike in 2021 caused by Covid-19 (coronavirus)/

Over the last few years, Moody’s noted operators’ growth has lagged GDP rises.

The gains will be led by emerging markets, with average revenue to grow 5.2 per cent annually, while growth in developed markets is pegged at around 3.6 per cent.

Moody’s noted operators in the region are diversifying into adjacent businesses such as digital advertising, banks and cybersecurity to find new growth drivers.

It expects average capital spending as a percentage of revenue to be higher for emerging markets at 30 per cent to 32 per cent as companies step up 5G investment while continuing to build LTE networks.

The percentage for developed markets will be 17 per cent to 18 per cent, as most operators can fund capex with cash from operations, containing a rise in debt.