Market Research Logo

Hong Kong - Telecoms, Mobile, Broadband and Forecasts

Rising imperative for new business models to succeed as LTE and FttX fuel data demandHong Kong, a Special Administrative Region (SAR) of China, has built one of the most sophisticated and dynamic telecommunications markets in the world. Hong Kong’s regulator, the Office of the Communications Authority (OFCA), has played a major role in developing the telecom sector. The country has put in place substantial infrastructure which supports one of the world’s highest population penetration of mobile and fixed telephone services at around 230% and 50% respectively. In addition to Hong Kong’s strong technology edge, its close geographical proximity to mainland China makes it a key gateway for all foreign telecom companies and equipment vendors. Hong Kong is also a key regional telecommunications hub and is the landing point for a number of strategically important submarine cables.

Hong Kong provides 90% of all households with access to broadband connectivity. The number of broadband subscribers represents about 75% of the total internet subscriber base. The extensive FttX, DSL and cable coverage coupled with a large fibre optic footprint has driven the market for triple play services and IPTV.

The mobile market continues to evolve as all operators have now launched LTE services. A stronger than anticipated mobile growth rate has resulted in BuddeComm lifting the forecast to 2018. The strong up-take in 4G has seen an encouraging lift in ARPU due to operators changing pricing plan constructs, which has mitigated accelerated declines in SMS traffic volumes.

Key Highlights:

Fixed line subscriptions decline faster than expected, impacted by increased VoIP usage coupled with an element of mobile substitution.Fixed broadband growth is the slowest on record although this is largely attributed to household penetration levels reaching 90%. Fibre accounts for 60% of all broadband subscriptions and Hong Kong is a world leader in terms of broadband connection speeds and competitive pricing.

3G/4Gsubscriptions consist of close to 60% of the total mobile base while data contributions to mobile revenue now exceed 50%.

An additional 50MHz of spectrum in the 2.5/2.6GHz band was awarded to five operators which will alleviate short term spectrum congestion concerns. Increasing smartphone and tablet adoption has resulted in a six-fold increase in mobile data used per subscriber over the past four years. . The average 2.5G/3G/4G subscriber used in excess of 750Mbytes per month in 2012.

2012 saw increased Wi-Fi deployment in Hong Kong. Notably, Hong Kong Broadband Network acquired a well established Wi-Fi wholesale operator to expand its consumer reach.

Domestic traffic demand has been met by a 45% increase in equipped submarine capacity over 2012 and a 27% increase in activated submarine capacity.

Hong Kong – Key performance indicators – 2010 - 2013
Sector | 2010 | 2013 (e)
Internet subscribers (million)
Internet users | 5.60 | 6.00
Internet subscribers | 2.87 | 3.20
Broadband subscribers (million)
Total | 2.12 | 2.30
FttX | 0.74 | 1.61
Subscribers to Telecoms Services
Fixed-line telephone subscribers (million) | 3.68 | 3.43
Mobile phone subscribers (million) | 13.40 | 17.60
3G/4G market share of mobile base | 39% | 64%
(Source: BuddeComm)


  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics Hong Kong - 2013
    • Table Telecommunications revenue and investment - 2012 (e)
    • Table Telephone network statistics - January 2013
    • Table Internet statistics - March 2013
    • Table Broadband statistics - January 2013
    • Table Mobile statistics - January 2013
    • Table National telecommunications authorities
  • COUNTRY OVERVIEW
    • BACKGROUND
    • HONG KONG'S ECONOMY
  • TELECOMMUNICATIONS MARKET
    • OVERVIEW OF HONG KONG'S TELECOM MARKET
      • Table Hong Kong telecoms service revenue and capex - 1994 - 2011
    • COMPETITION IN THE MARKET
      • Table Number of telecoms operators by category - March 2013
      • Table Licensees and issue dates - April 2013
      • Table Major operators by service type - 2011
    • MARKET PRICING
      • 2008
      • 2011
    • FOCUS ON INNOVATION IN A MATURE MARKET
    • TELECOMMUNICATIONS MARKET SECTORS
      • Fixed-line and mobile phones
        • Table Fixed line versus mobile subscriptions and penetration rates - 1998 - 2014
      • Fixed telecommunications services - background
        • Table Fixed-line telephony subscribers - 2000 - 2013
        • Table External fixed-line telephone traffic volume in minutes - 1997 - 2012
        • Table IP telephony subscribers - 2007 - 2013
      • Internet and broadband
      • Submarine cable networks
        • Table Major submarine cables with landing points in Hong Kong - 2012
        • Table External telecommunications facilities capacity of Hong Kong - 2000 - 2012
  • REGULATORY ENVIRONMENT
    • OVERVIEW
    • OFCA (OFFICE OF THE COMMUNICATIONS AUTHORITY)
      • OFTA (Office of the Telecommunications Authority)
    • REGULATORY DEVELOPMENTS - 2000-2013
  • MAJOR OPERATORS
    • PACIFIC CENTURY CYBERWORKS (PCCW)
      • Company overview
      • Company background
      • Financial statistics
        • Table PCCW consolidated revenue, EBITDA and profit US$ - 2001 - 2012
        • Table PCCW core revenue US$ - 2006 - 2012
        • Table PCCW TSS revenue US$ - 2008 - 2012
      • Operations statistics
        • Table PCCW exchange lines in service - 2003 - 2012
        • Table PCCW 2G and 3G subscribers - 2005 - 2012
        • Table PCCW prepaid and postpaid subscribers - 2005 - 2012
        • Table PCCW 3G and blended ARPU - 2007 - 2012
    • CITY TELECOM (HK) LTD (HKBN)
      • Company overview
        • Table City Telecom revenue and profit - 2001 - 2011
      • Company background
    • HUTCHISON TELECOM HONG KONG HOLDINGS (HTHKH)
      • Company overview
      • Company background
      • Financial statistics
        • Table HTHKH revenue and profit - 2006 - 2012
        • Table HTHKH mobile service revenue for data, voice, roaming - 2009 - 2012
      • Operational statistics
        • Table Hutchison mobile subscribers and annual change - 1998 - 2012
        • Table Hutchison 3G mobile subscribers and annual change - 2004 - 2008
        • Table HTHKH mobile subscribers 2G and 3G postpaid and total - 2008 - 2012
        • Table Hutchison postpaid ARPU - 2010 - 2012
        • Table HTHKH frequency allocations - 2012
    • WHARF T&T HONG KONG (I-CABLE)
      • Company overview
      • Company background
      • Financial statistics
        • Table i-Cable revenue and profit - 2005 - 2012
      • Operational statistics
        • Table Wharf T&T fixed-line, i-Cable broadband and pay TV subscribers - 2001 - 2012
    • CSL
      • Company overview
      • Company background
      • Operational statistics
        • Table Hong Kong CSL subscribers and annual change - 1998 - 2005
        • Table New World Mobility subscribers and annual change - 1998 - 2005
        • Table CSL New World subscribers and annual change - 2006 - 2012
    • CHINA MOBILE HONG KONG (PEOPLES)
      • Table Peoples (China Mobile Hong Kong) subscribers and annual change - 1998 - 2012
    • SMARTONE-VODAFONE
      • Company overview
      • Company background
      • Financial statistics
        • Table SmarTone revenue and profit - 2002 - 2012
        • Table SmarTone - ARPU and data contribution - 2002 - 2012
      • Operational statistics
        • Table SmarTone subscribers and annual change - 1998 - 2012
        • Table SmarTone - 3G subscribers - 2004 - 2012
  • INTERNET MARKET
    • OVERVIEW
    • INTERNET STATISTICS
      • Table Internet users and subscribers - 1996 - 2013
    • INTERNET TRAFFIC VOLUME
      • Table Internet traffic volume (PSTN and broadband) - 1997 - 2012
      • Table Use of international private leased circuits (IPLCs) - 2002 - 2012
    • DOMAIN NAMES
      • Table Registered domain names - 2004 - 2013
    • INTERNET CONTRIBUTION TO GDP
  • BROADBAND MARKET
    • BACKGROUND
    • OVERVIEW
    • BROADBAND STATISTICS
      • Table Broadband internet access subscribers - 2000 - 2013
      • Table Narrowband internet access subscribers - 2000 - 2013
      • Table Prepaid and leased line internet access subscribers - 2000 - 2013
      • Table Broadband subscribers and households - January 2013
      • Table Broadband internet traffic volume - 2000 - 2012
    • BROADBAND PERFORMANCE PLEDGES
      • Table Broadband performance pledges - Q4 2012
    • DIGITAL 21 IT STRATEGY
      • Table Digital 21 Strategy - key indicators - April 2013
    • BROADBAND SURVEY RESULTS
      • Saïd Business School
        • Table Broadband ranking evolution top 10 countries - 2008 - 2010
      • Akamai Technologies
    • FTTB/FTTH BUILDING REGISTRATION SCHEME
    • BROADBAND TECHNOLOGIES
      • Overview
        • Table Broadband subscribers by operator - 2007 - 2012
      • Cable modems
        • Table Cable modem internet subscribers - 2000 - 2014
      • Digital subscriber line (DSL)
        • Table DSL subscribers - 1999 - 2014
      • Fibre to the home (FttH)
        • Table FttX subscribers - 2001 - 2014
      • Wireless access
    • MAJOR BROADBAND OPERATORS
      • i-Cable Communications (Hong Kong Cable Television Ltd)
        • Table i-Cable broadband and VoIP subscribers and penetration - 2000 - 2012
        • Table i-Cable cable TV subscribers, penetration and ARPU - 1995 - 2012
      • Hong Kong Broadband Network Services (City Telecom - CTInets)
        • Table HKBN triple play subscribers, ARPU and IDD traffic volume - 2003 - 2012
      • PCCW
        • Table PCCW broadband subscribers - 2000 - 2012
        • Table PCCW NOW TV subscribers and ARPU - 2003 - 2012
      • SmarTone Broadband Services
    • BROADBAND TELEVISION IN HONG KONG
      • Internet protocol TV (IPTV)
        • Table IPTV subscribers - 2003 - 2012
      • Cable television (CATV)
        • Table Cable television subscribers - 2000 - 2012
  • DIGITAL MEDIA / DIGITAL ECONOMY
    • TELEVISION BROADCASTING
      • Overview
        • Table Broadcasting service statistics - March 2013
        • Table TV household penetration by licence type - March 2013
        • Table TV broadcasting licensees - March 2013
        • Table TV channels provided by all TV licensees in Hong Kong - 2000 - 2012
      • Transmission modes
        • Table Transmission modes employed by TV licensees
        • Table Hong Kong households' TV coverage by transmission modes - December 2009
        • Table Digital terrestrial television population coverage - 2007 - 2011
      • Pay TV
        • Table Pay TV subscribers - 2000 - 2010
      • Free-to-air (FTA) television
  • MOBILE COMMUNICATIONS
    • OVERVIEW
    • MARKET STATUS 2013
    • MOBILE STATISTICS
      • Mobile subscribers 1984-2012
        • Table Mobile subscribers and annual change - 1984 - 2014
      • Mobile prepaid cards 1997-2013
        • Table Prepaid and activated SIM cards - 1997 - 2013
      • Mobile subscribers by operator
        • Table Mobile operators, technology, subscribers and annual change - March 2009
        • Table Selected mobile operator subscribers and market share - December 2012
        • Table Operator market share by subscribers - 2003 - 2011
    • REGULATORY ISSUES
      • Mobile number portability (MNP)
        • Table Total mobile numbers ported - 1999 - 2012
      • Spectrum licensing
    • MOBILE TECHNOLOGIES
      • Analogue
        • Table Analogue subscribers and annual change - 1984 - 1997
      • Telepoint CT-2
      • GSM/2G
        • Table GSM 2G subscribers and annual change - 1993 - 2012
      • Personal communications services (PCS)/2G
        • Table PCS subscribers and annual change - 1997 - 2008
      • High-speed circuit-switched data (HSCSD)
      • General packet radio service (GPRS)
        • Table 2.5G subscribers - 2002 - 2012
      • Enhanced data for GSM evolution (EDGE)
      • High-speed downlink packet access (HSDPA)
      • CDMA
      • CDMA2000
      • Third Generation (3G) mobile
        • Table 3G/4G mobile subscribers - 2005 - 2012
      • LTE (Long-term evolution)/4G
    • MOBILE VIRTUAL NETWORK OPERATORS (MVNO)
      • Table Mobile virtual network operator licensees - April 2013
      • Table MVNO subscribers - 2005 - 2012
    • MOBILE SERVICES
      • Short message service (SMS)
        • Table SMS messages sent and received - 2002 - 2012
        • Table SMS statistics for Christmas Day and New Years Day - 2005 - 2013
        • Table SMS statistics for Valentine's Day and Chinese New Year Day - 2006 - 2013
      • Mobile data usage
        • Table Mobile data usage - 2002 - 2012
    • MOBILE CONTENT
      • Background
      • Mobile phone versus smartphone usage
        • Table Top 10 activities on mobile phones versus smartphones - 2010
      • Smartphones and tablets
      • Mobile TV
      • Mobile music
      • Stock trading
  • FORECASTS
    • FORECAST FIXED LINE SUBSCRIBERS - 2013-2014; 2018
      • Table Forecast fixed-line subscribers and penetration - higher band - 2013 - 2014; 2018
      • Table Forecast fixed-line subscribers and penetration - lower band - 2013 - 2014; 2018
    • FORECAST BROADBAND SUBSCRIBERS: 2013-2014; 2018
      • Table Forecast broadband subscribers and penetration - higher band: 2013 - 2014; 2018
      • Table Forecast broadband subscribers and penetration - lower band: 2013 - 2014; 2018
    • FORECAST TOTAL MOBILE AND 3G SUBSCRIBERS - 2013-2014; 2018
      • Table Forecast mobile subscribers and penetration higher band forecast - 2013 - 2014; 2018
      • Table Forecast mobile subscribers and penetration lower band forecast - 2013 - 2014; 2018

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report