• Japanese
  • Korean
  • Chinese
Cover Image

Hong Kong - Telecoms, Mobile, Broadband and Forecasts

Overview

This report covers the sophisticated Hong Kong telecommunications market, highlighting general trends and developments in telecommunications, mobile, internet, broadband, and converging media including VoIP and IPTV developments.

Subjects covered include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major players, revenues, subscribers, ARPU;
  • Internet, VoIP, IPTV;
  • Mobile voice and data markets;
  • Broadband (FttX, DSL, cable TV, wireless);
  • Convergence and digital media;
  • Forecasts to 2018.

Executive Summary

3G/4G and FttX continue to fuel the demand for data in Hong Kong

Hong 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 240% and 47% 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 supports access to broadband connectivity for more than 80% of all households. 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 optical fibre 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. The strong up-take in 4G has seen an encouraging lift in ARPU due to operators changing their approach to pricing plans, which has inevitably mitigated accelerated declines in SMS traffic volumes.

Key Highlights:

  • Fixed line subscriptions decline, impacted among other things by increased VoIP usage;
  • Fixed broadband growth slows as household penetration passes 80%;
  • Fibre-based services account for 80% of all broadband subscriptions making Hong Kong a world leader in connection speeds and competitive pricing;
  • 3G/4Gsubscriptions consist of close to 70% of the total mobile base;
  • Data contributions to mobile revenue exceed 50%;
  • The average 2.5G/3G/4G subscriber used around 1,000Mbytes per month in 2013;
  • CSL launched the first commercial VoLTE service in Hong Kong at end-2013;
  • PCCW/HKT completed the acquisition of rival mobile operator CSL in May 2014.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

1. Key Statistics

  • 1.1. Country overview
    • 1.1.1. Background
    • 1.1.2. Hong Kong's economy

2. Telecommunications Market

  • 2.1. Overview of Hong Kong's telecom market
  • 2.2. Competition in the market
    • 2.2.1. PCCW/HKT's acquisition of CSL
  • 2.3. Market pricing
    • 2.3.1. 2008
    • 2.3.2. 2011
  • 2.4. Focus on innovation in a mature market

3. Regulatory Environment

  • 3.1. Overview
  • 3.2. OFCA (Office of the Communications Authority)
    • 3.2.1. OFTA (Office of the Telecommunications Authority)
  • 3.3. Regulatory developments - 2000-2013

4. Fixed Network Market

  • 4.1. Fixed-line and mobile phones
  • 4.2. Fixed telecommunications services - background
    • 4.2.1. Fixed-line statistics by business and residential subscribers
    • 4.2.2. IP telephony statistics by business and residential subscribers

5. Major Operators

  • 5.1. Pacific Century CyberWorks (PCCW) / HKT
    • 5.1.1. Company overview
    • 5.1.2. Company background
    • 5.1.3. Financial statistics
    • 5.1.4. Operations statistics
  • 5.2. City Telecom (HK) Ltd (HKBN)
    • 5.2.1. Company overview
    • 5.2.2. Company background
  • 5.3. Hutchison Telecom Hong Kong Holdings (HTHKH)
    • 5.3.1. Company overview
    • 5.3.2. Company background
    • 5.3.3. Financial statistics
    • 5.3.4. Operational statistics
  • 5.4. Wharf T&T Hong Kong (i-Cable)
    • 5.4.1. Company overview
    • 5.4.2. Company background
    • 5.4.3. Financial statistics
    • 5.4.4. Operational statistics
  • 5.5. CSL
    • 5.5.1. Company overview
    • 5.5.2. Company background
    • 5.5.3. Operational statistics
  • 5.6. China Mobile Hong Kong (Peoples)
  • 5.7. SmarTone-Vodafone
    • 5.7.1. Company overview
    • 5.7.2. Company background
    • 5.7.3. Financial statistics
    • 5.7.4. Operational statistics

6. Telecommunications Infrastructure

  • 6.1. Submarine cable networks

7. Internet Market

  • 7.1. Overview
  • 7.2. Internet statistics
  • 7.3. Internet traffic volume
  • 7.4. Domain names
  • 7.5. Internet contribution to GDP

8. Broadband Market

  • 8.1. Background
  • 8.2. Overview
  • 8.3. Broadband statistics
  • 8.4. Broadband performance pledges
  • 8.5. Digital 21 IT Strategy
  • 8.6. Broadband Survey results
    • 8.6.1. Saïd Business School
    • 8.6.2. Akamai Technologies
  • 8.7. FttB/FttH building registration scheme
  • 8.8. Broadband technologies
    • 8.8.1. Overview
    • 8.8.2. Cable modems
    • 8.8.3. Digital subscriber line (DSL)
    • 8.8.4. Fibre to the home (FttH)
    • 8.8.5. Wireless access
  • 8.9. Major broadband operators
    • 8.9.1. i-Cable Communications (Hong Kong Cable Television Ltd)
    • 8.9.2. Hong Kong Broadband Network Services (City Telecom - CTInets)
    • 8.9.3. PCCW
    • 8.9.4. SmarTone Broadband Services
  • 8.10. Broadband television in Hong Kong
    • 8.10.1. Internet protocol TV (IPTV)
    • 8.10.2. Cable television (CATV)

9. Digital Media / Digital Economy

  • 9.1. Television broadcasting
    • 9.1.1. Overview
    • 9.1.2. Transmission modes
    • 9.1.3. Pay TV
    • 9.1.4. Free-to-air (FTA) television

10. Mobile Communications

  • 10.1. Overview
  • 10.2. Market status 2013
  • 10.3. Mobile statistics
    • 10.3.1. Mobile subscribers 1984-2012
    • 10.3.2. Mobile prepaid cards 1997-2013
    • 10.3.3. Mobile subscribers by operator
  • 10.4. Regulatory issues
    • 10.4.1. Mobile number portability (MNP)
    • 10.4.2. Spectrum licensing
  • 10.5. Mobile technologies
    • 10.5.1. Analogue
    • 10.5.2. Telepoint CT-2
    • 10.5.3. GSM/2G
    • 10.5.4. Personal communications services (PCS)/2G
    • 10.5.5. High-speed circuit-switched data (HSCSD)
    • 10.5.6. General packet radio service (GPRS)
    • 10.5.7. Enhanced data for GSM evolution (EDGE)
    • 10.5.8. High-speed downlink packet access (HSDPA)
    • 10.5.9. CDMA
    • 10.5.10. CDMA2000
    • 10.5.11. Third Generation (3G) mobile
    • 10.5.12. LTE (Long-term evolution)/4G
    • 10.5.13. Voice over LTE (VoLTE)
  • 10.6. Mobile virtual network operators (MVNO)
  • 10.7. Mobile services
    • 10.7.1. Short message service (SMS)
    • 10.7.2. Mobile data usage
  • 10.8. Mobile content
    • 10.8.1. Background
    • 10.8.2. Mobile phone versus smartphone usage
    • 10.8.3. Smartphones and tablets
    • 10.8.4. Mobile TV
    • 10.8.5. Mobile music
    • 10.8.6. Stock trading
  • 10.9. Major mobile operators

11. Forecasts

  • 11.1. Forecast fixed line subscribers - 2014; 2018
  • 11.2. Forecast broadband subscribers: - 2014; 2018
  • 11.3. Forecast total mobile and 3G subscribers - 2014; 2018

List of Tables:

  • Table 1 - Country statistics Hong Kong - 2013
  • Table 2 - Telecommunications revenue and investment - 2012 (e)
  • Table 3 - Telephone network statistics - April 2014
  • Table 4 - Internet statistics - 2013
  • Table 5 - Broadband statistics - March 2014
  • Table 6 - Mobile statistics - April 2014
  • Table 7 - National telecommunications authorities
  • Table 8 - Hong Kong's real GDP growth rate - 2008 - 2015
  • Table 9 - Hong Kong telecom service revenue and capex - 1994 - 2012
  • Table 10 - Number of telecoms operators by category - March 2013
  • Table 11 - Fixed line versus mobile subscriptions and penetration rates - 1998 - 2014
  • Table 12 - Fixed-line telephony subscribers - 2000 - 2014
  • Table 13 - External fixed-line telephone traffic volume in minutes - 1997 - 2012
  • Table 14 - IP telephony subscribers - 2007 - 2014
  • Table 15 - PCCW consolidated revenue, EBITDA and profit US$ - 2001 - 2013
  • Table 16 - PCCW core revenue US$ - 2006 - 2013
  • Table 17 - PCCW TSS revenue US$ - 2008 - 2013
  • Table 18 - PCCW exchange lines in service - 2003 - 2014
  • Table 19 - PCCW - fibre broadband subscribers - 2003 - 2014
  • Table 20 - PCCW 2G and 3G subscribers - 2005 - 2012
  • Table 21 - PCCW prepaid and postpaid subscribers - 2005 - 2014
  • Table 22 - PCCW 3G and blended ARPU - 2007 - 2014
  • Table 23 - City Telecom revenue and profit - 2001 - 2011
  • Table 24 - Hong Kong Broadband - residential broadband subscribers - 2010 - 2013
  • Table 25 - HTHKH revenue and profit - 2006 - 2013
  • Table 26 - HTHKH mobile service revenue for data, voice, roaming - 2010 - 2013
  • Table 27 - Hutchison mobile subscribers and annual change - 1998 - 2014
  • Table 28 - Hutchison 3G mobile subscribers and annual change - 2004 - 2008
  • Table 29 - HTHKH mobile subscribers 2G and 3G postpaid and total - 2008 - 2014
  • Table 30 - Hutchison postpaid ARPU - 2010 - 2014
  • Table 31 - i-Cable revenue and profit - 2005 - 2013
  • Table 32 - Wharf T&T fixed-line, i-Cable broadband and pay TV subscribers - 2001 - 2013
  • Table 33 - Hong Kong CSL subscribers and annual change - 1998 - 2005
  • Table 34 - New World Mobility subscribers and annual change - 1998 - 2005
  • Table 35 - CSL New World subscribers and annual change - 2006 - 2013
  • Table 36 - Peoples (China Mobile Hong Kong) subscribers and annual change - 1998 - 2013
  • Table 37 - SmarTone revenue and profit - 2002 - 2014
  • Table 38 - SmarTone - ARPU and data contribution - 2002 - 2014
  • Table 39 - SmarTone subscribers and annual change - 1998 - 2014
  • Table 40 - SmarTone - 3G subscribers - 2004 - 2012
  • Table 41 - External telecommunications facilities capacity of Hong Kong - 2000 - 2013
  • Table 42 - Historical - Internet users and subscribers - 1996 - 2004
  • Table 43 - Internet users and penetration - 2005 - 2013
  • Table 44 - Internet subscribers and penetration - 2005 - 2013
  • Table 45 - Narrowband internet access subscribers - 2000 - 2014
  • Table 46 - Internet traffic volume (PSTN and broadband) - 1997 - 2013
  • Table 47 - Use of international private leased circuits (IPLCs) - 2002 - 2013
  • Table 48 - Registered domain names - 2004 - 2013
  • Table 49 - Broadband internet access subscribers - 2000 - 2014
  • Table 50 - Prepaid and leased line internet access subscribers - 2000 - 2014
  • Table 51 - Broadband subscribers and households - February 2014
  • Table 52 - Broadband internet traffic volume - 2000 - 2013
  • Table 53 - Broadband performance pledges - Q4 2012
  • Table 54 - Digital 21 Strategy - key indicators - April 2013
  • Table 55 - Broadband ranking evolution top 10 countries - 2008 - 2010
  • Table 56 - Broadband subscribers by operator - 2007 - 2012
  • Table 57 - Cable modem internet subscribers - 2000 - 2014
  • Table 58 - DSL subscribers - 1999 - 2014
  • Table 59 - FttX subscribers - 2001 - 2014
  • Table 60 - i-Cable broadband and VoIP subscribers and penetration - 2000 - 2012
  • Table 61 - i-Cable cable TV subscribers, penetration and ARPU - 1995 - 2012
  • Table 62 - HKBN triple play subscribers, ARPU and IDD traffic volume - 2003 - 2012
  • Table 63 - PCCW broadband subscribers - 2000 - 2012
  • Table 64 - PCCW NOW TV subscribers and ARPU - 2003 - 2012
  • Table 65 - IPTV subscribers - 2003 - 2012
  • Table 66 - Cable television subscribers - 2000 - 2013
  • Table 67 - Broadcasting service statistics - October 2013
  • Table 68 - TV household penetration by licence type - December 2013
  • Table 69 - TV channels provided by all TV licensees in Hong Kong - 2000 - 2012
  • Table 70 - Hong Kong households' TV coverage by transmission modes - December 2009
  • Table 71 - Digital terrestrial television population coverage - 2007 - 2011
  • Table 72 - Pay TV subscribers - 2000 - 2010
  • Table 73 - Historical - Mobile subscribers, annual change and penetration - 1984 - 2005
  • Table 74 - Mobile subscribers, annual change and penetration - 2006 - 2014
  • Table 75 - Prepaid and activated SIM cards - 1997 - 2014
  • Table 76 - Mobile operators, technology, subscribers and annual change - March 2009
  • Table 77 - Selected mobile operator subscribers and market share - December 2012
  • Table 78 - Operator market share by subscribers - 2003 - 2011
  • Table 79 - Total mobile numbers ported - 1999 - 2013
  • Table 80 - Analogue subscribers and annual change - 1984 - 1997
  • Table 81 - GSM 2G subscribers and annual change - 1993 - 2013
  • Table 82 - PCS subscribers and annual change - 1997 - 2008
  • Table 83 - 2.5G subscribers - 2002 - 2014
  • Table 84 - 3G/4G mobile subscribers - 2005 - 2014
  • Table 85 - MVNO subscribers - 2005 - 2014
  • Table 86 - SMS messages sent and received - 2002 - 2012
  • Table 87 - SMS statistics for Christmas Day and New Years Day - 2005 - 2014
  • Table 88 - SMS statistics for Valentine's Day and Chinese New Year Day - 2006 - 2014
  • Table 89 - Mobile data usage - 2002 - 2014
  • Table 90 - Major mobile operators - subscribers and market share - December 2013
  • Table 91 - Forecast fixed-line subscribers and penetration - higher band - 2014; 2018
  • Table 92 - Forecast fixed-line subscribers and penetration - lower band - 2014; 2018
  • Table 93 - Forecast broadband subscribers and penetration - higher band: - 2014; 2018
  • Table 94 - Forecast broadband subscribers and penetration - lower band: - 2014; 2018
  • Table 95 - Forecast mobile subscribers and penetration higher band forecast - 2014; 2018
  • Table 96 - Forecast mobile subscribers and penetration lower band forecast - 2014; 2018

List of Charts:

  • Chart 1 - Hong Kong service revenue and capex - 1995 - 2012
  • Chart 2 - Hong Kong fixed-line and mobile subscribers - 1995 - 2014
  • Chart 3 - Hong Kong fixed-line telephony subscribers - 2000 - 2014
  • Chart 4 - Hong Kong IP telephony subscribers - 2007 - 2014
  • Chart 5 - PCCW consolidated revenue - 2001 - 2012
  • Chart 6 - PCCW exchange lines in service - 2003 - 2014
  • Chart 7 - Hong Kong internet users and subscribers - 2005 - 2013
  • Chart 8 - Hong Kong international broadband traffic volume - 2002 - 2013
  • Chart 9 - Hong Kong broadband internet subscribers and population penetration - 2000 - 2014
  • Chart 10 - Hong Kong internet subscribers by type - 2000 - 2012
  • Chart 11 - Hong Kong broadband internet subscribers by access type - 2000 - 2014
  • Chart 12 - Hong Kong cable modem internet subscribers - 2000 - 2014
  • Chart 13 - Hong Kong DSL internet subscribers - 2000 - 2014
  • Chart 14 - Hong Kong cable FttX subscribers - 2007 - 2014
  • Chart 15 - Hong Kong mobile subscriber and penetration - 2006 - 2014
  • Chart 16 - Hong Kong 3G/4G mobile subscribers - 2005 - 2014
  • Chart 17 - Major mobile operators and market share - December 2013

List of Exhibits:

  • Exhibit 1 - Map of Hong Kong
  • Exhibit 2 - Licensees and issue dates - April 2013
  • Exhibit 3 - Major operators by service type - 2011
  • Exhibit 4 - The ‘original' PCCW deal
  • Exhibit 5 - HTHKH frequency allocations - 2012
  • Exhibit 6 - Major submarine cables with landing points in Hong Kong - 2013
  • Exhibit 7 -TV broadcasting licensees - March 2013
  • Exhibit 8 - Transmission modes employed by TV licensees
  • Exhibit 9 - Mobile virtual network operator licensees - April 2013
  • Exhibit 10 - Top 10 activities on mobile phones versus smartphones - 2010
Show More
Pricing
Get Notified
Email me when related reports are published