Hong Kong - Key Statistics, Forecasts, Telecom Market and Regulatory Overviews

Synopsis

Consistent with its status as one of the leading telecommunications economies in the world, Hong Kong has built itself world-class telecom infrastructure and has developed one of the most dynamic telecommunications markets in the world. Digitalised since 1995, the Special Administrative Region has one of the world’s highest penetrations in mobiles, internet and broadband. Hong Kong’s regulator, the Office of the Telecommunications Authority, has played a major role in developing the telecom sector. In addition to Hong Kong’s strong technology edge, its close geographical (and political) proximity to mainland China makes it a key gateway for foreign telecom companies and equipment vendors. Hong Kong is also a key regional telecommunications hub and is the landing point for a significant number of strategically important submarine cables. This report provides a statistical view of the Hong Kong telecoms market including the established television industry which is being challenged by broadband television in its various forms. Forecasts are included for the fixed-line market for 2010-2012 and 2015.

Key Developments:

The internet is responsible for 6% of GDP; fixed line subscribers continue to decline while IP telephony usage increases; broadband is used by 85% of households; mobile subscriptions trend towards 200% penetration levels; three new submarine cables are activated; over 25% increase in equipped and activated submarine cable capacity over six months.

Companies covered in this report include:

PCCW; Hong Kong Broadband Network; SmarTone; Hutchison Telecom; Wharf T&T; iCable; New World Telecom; City Telecom; CSL; China Mobile HK

Table of Contents

• 1. Synopsis
• 2. Key statistics
• 3. Country overview
  • 3.1 Background
  • 3.2 Hong Kong’s economy
• 4. Telecommunications market
  • 4.1 Overview of Hong Kong’s telecom market
  • 4.2 Competition in the market
  • 4.3 Market pricing
    • 4.3.1 2008
    • 4.3.2 2011
  • 4.4 Focus on innovation in a mature market
• 5. Telecommunications market sectors
  • 5.1 Fixed-line and mobile phones
  • 5.2 Fixed telecommunications services – background
    • 5.2.1 Fixed-line statistics by business and residential subscribers
    • 5.2.2 IP telephony statistics by business and residential subscribers
  • 5.3 Internet and broadband
  • 5.4 Submarine cable networks
  • 5.5 Television broadcasting
    • 5.5.1 Overview
    • 5.5.2 Transmission modes
    • 5.5.3 Pay TV
    • 5.5.4 Free-to-air (FTA) television
• 6. Regulatory environment
  • 6.1 Overview
  • 6.2 OFTA (Office of the Telecommunications Authority)
  • 6.3 Regulatory developments – 2000-2010
• 7. Forecasts
  • 7.1 Forecast fixed line subscribers – 2010-2012; 2015
  • 7.2 Forecasting methodology
• 8. Related reports

• Table 1 – Country statistics Hong Kong – 2011
• Table 2 – Telecommunications revenue and investment – 2010
• Table 3 – Telephone network statistics – August 2011
• Table 4 – Internet statistics – December 2010
• Table 5 – Broadband statistics – December 2010
• Table 6 – Mobile statistics – December 2010
• Table 7 – National telecommunications authorities
• Table 8 – Hong Kong telecoms service revenue and capex – 1994 - 2010
• Table 9 – Number of telecoms licences by category – November 2011
• Table 10 – Fixed line versus mobile subscriptions and penetration rates – 1998 - 2012
• Table 11 – Fixed-line telephony subscribers – 2000 - 2011
• Table 12 – External fixed-line telephone traffic volume in minutes – 1997 - 2010
• Table 13 – IP telephony subscribers – 2007 - 2011
• Table 14 – External telecommunications facilities capacity of Hong Kong – 2000 - 2011
• Table 15 – Broadcasting service statistics – March 2011
• Table 16 – TV household penetration by licence type – December 2009
• Table 17 – TV channels provided by all TV licensees in Hong Kong – 2000 - 2010
• Table 18 – Hong Kong households’ TV coverage by transmission modes – December 2009
• Table 19 – Digital terrestrial television population coverage – 2007 - 2010
• Table 20 – Pay TV subscribers – 2000 - 2010
• Table 21 – Forecast fixed-line subscribers and penetration - higher band – 2010 - 2012; 2015
• Table 22 – Forecast fixed-line subscribers and penetration - lower band – 2010 - 2012; 2015

• Chart 1 – Hong Kong service revenue and capex – 1995 - 2010
• Chart 2 – Hong Kong fixed-line and mobile subscribers – 1995 - 2012
• Chart 3 – Hong Kong fixed-line telephony subscribers – 2000 - 2011
• Chart 4 – Hong Kong IP telephony subscribers – 2007 - 2011

• Exhibit 1 – Map of Hong Kong
• Exhibit 2 – Licensees and issue dates – May 2011
• Exhibit 3 – Major operators by service type - 2011
• Exhibit 4 – Major submarine cables with landing points in Hong Kong – 2011
• Exhibit 5 –TV broadcasting licensees – March 2011
• Exhibit 6 – Transmission modes employed by TV licensees