BMI View: The Hong Kong telecommunications market is mature and saturation in the mobile sector is
evident with penetration rates inching past the 238% barrier. We are of the opinion that organic growth no
longer exists in the market and operators will have to upsell their converged services bundles and advanced
mobile data LTE and LTE-Advanced services to maintain their revenue streams. Market growth will further
be driven from IoT, connected cars and smart devices, and a multitude of technological innovations
requiring mobile data connections. We note that 5G and LTE-Advanced investments over the next four
years will constitute the bulk of operator CapEx investments.