2012 Hong Kong - Telecoms, Mobile, Broadband and Forecasts
Publication Overview
Hong Kong has a sophisticated telecommunications infrastructure. The report covers trends and developments in telecommunications, mobile, Internet, broadband, and converging media including VoIP and IPTV developments. Subjects 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
Researcher:- Derrick Dekker
Executive Summary Accelerated LTE and FttX deployments in Hong Kong fuel a rising demand for data
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 penetrations of mobile and fixed telephone services at around 210% 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 significant number of strategically important submarine cables.
Hong Kong provides 85% of all households with access to broadband connectivity. The number of broadband subscribers represents about 75% of the total internet subscriber base, supported by a large number of ISPs. 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 operators ready themselves for deploying LTE services. The market shows few signs of cooling and the cycle of a new technology and the subsequent battle for market share is about to begin again, even while 3G deployment has yet to reach its peak.
Key Highlights:
In a densely packed market that has over 2 million TV households, there were over 1.3 million IPTV subscribers and over 1.1 million cable TV subscribers in Hong Kong going into 2012
3G/4Gsubscriptions continue to grow in a competitive market and consisted of over 50% of total mobile subscribers.
A continued boom in mobile communications, in particular in mobile data is driving the need for additional spectrum. Total mobile data usage has witnessed an explosive growth with a year-on-year increase of 189% and on average each 2.5G and 3G subscriber sends 400Mbytes per month.
Fibre deployments continue to expand to over 60% of all broadband subscriptions and has resulted in Hong Kong becoming a world leader in terms of its broadband connection speed and competitive pricing.
Hong Kong – Key performance indicators – 2010 - 2012
Sector
2010
2012 (e)
Internet subscribers (million)
Internet users
5.60
5.90
Internet subscribers
2.87
3.03
Broadband subscribers (million)
Total
2.12
2.35
FttX
1.10
1.50
Subscribers to Telecoms Services
Fixed-line telephone subscribers (million)
3.68
3.52
Mobile phone subscribers (million)
13.40
16.00
3G market share of mobile base
39%
56%
(Source: BuddeComm)
Table of Contents
1. Key Statistics
2. Country Overview
2.1 Background
2.2 Hong Kong’s economy
3. Telecommunications Market
3.1 Overview of Hong Kong’s telecom market
3.2 Competition in the market
3.3 Market pricing
3.4 Focus on innovation in a mature market
3.5 Telecommunications market sectors
3.5.1 Fixed-line and mobile phones
3.5.2 Fixed telecommunications services – background
3.5.3 Internet and broadband
3.5.4 Submarine cable networks
4. Regulatory Environment
4.1 Overview
4.2 OFCA (Office of the Communications Authority)
4.2.1 OFTA (Office of the Telecommunications Authority)
4.3 Regulatory developments – 2000-2012
5. Major Operators
5.1 Pacific Century CyberWorks (PCCW)
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 New World Telecommunications Ltd
5.5.1 Company overview
5.5.2 Company background
5.5.3 Operational statistics
5.6 Peoples (China Resources Peoples Telephone Co Ltd)
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. Internet Market
6.1 Overview
6.2 Internet statistics
6.3 Internet traffic volume
6.4 Domain names
6.5 Internet contribution to GDP
7. Broadband Market
7.1 Background
7.2 Overview
7.3 Broadband statistics
7.4 Broadband performance pledges
7.5 Digital 21 IT Strategy
7.6 Broadband Survey results
7.6.1 Saïd Business School
7.6.2 Akamai Technologies
7.7 FttB/FttH building registration scheme
7.8 Broadband technologies
7.8.1 Overview
7.8.2 Cable modems
7.8.3 Digital subscriber line (DSL)
7.8.4 Fibre to the home (FttH)
7.8.5 Wireless access
7.9 Major broadband operators
7.9.1 i-Cable Communications (Hong Kong Cable Television Ltd)
7.9.2 Hong Kong Broadband Network Services (City Telecom - CTInets)
7.9.3 PCCW
7.9.4 SmarTone Broadband Services
7.10 Broadband television in Hong Kong
7.10.1 Internet protocol TV (IPTV)
7.10.2 Cable television (CATV)
8. Broadcasting
8.1 Overview
8.2 Transmission modes
8.2.1 Analogue transmission
8.2.2 Digital terrestrial transmission
8.2.3 Hybrid fibre coax cable (HFC) and microwave multipoint distribution system (MMDS)
8.2.4 Satellite transmission
8.2.5 Broadband transmission
8.3 Pay TV
8.4 Free-to-air (FTA) television
8.4.1 Television Broadcasts Ltd (TVB)
8.4.2 Asia Television Ltd (ATV)
9. Mobile Communications
9.1 Overview
9.2 Market status 2012
9.3 Mobile statistics
9.3.1 Mobile subscribers 1984-2012
9.3.2 Mobile prepaid cards 1997-2012
9.3.3 Mobile subscribers by operator
9.4 Regulatory issues
9.4.1 Mobile number portability (MNP)
9.4.2 Spectrum licensing
9.5 Mobile technologies
9.5.1 Analogue
9.5.2 Telepoint CT-2
9.5.3 GSM/2G
9.5.4 Personal communications services (PCS)/2G
9.5.5 High-speed circuit-switched data (HSCSD)
9.5.6 General packet radio service (GPRS)
9.5.7 Enhanced data for GSM evolution (EDGE)
9.5.8 High-speed downlink packet access (HSDPA)
9.5.9 CDMA
9.5.10 CDMA2000
9.5.11 Third Generation (3G) mobile
9.5.12 LTE (Long-term evolution)/4G
9.6 Mobile virtual network operators (MVNO)
9.7 Mobile services
9.7.1 Short message service (SMS)
9.7.2 Mobile data usage
9.8 Mobile content
9.8.1 Background
9.8.2 Mobile phone versus smartphone usage
9.8.3 Smartphones and tablets
9.8.4 Mobile TV
9.8.5 Mobile music
9.8.6 Stock trading
10. Forecasts
10.1 Forecast fixed line subscribers – 2011-2013; 2017
10.2 Forecast broadband subscribers: 2012-2013; 2017
10.3 Forecast total mobile and 3G subscribers – 2012-2013; 2017
11. Glossary of Abbreviations
Table 1 – Country statistics Hong Kong – 2012 Table 2 – Telecommunications revenue and investment – 2011 Table 3 – Telephone network statistics – March 2012 Table 4 – Internet statistics – March 2012 Table 5 – Broadband statistics – March 2012 Table 6 – Mobile statistics – March 2012 Table 7 – National telecommunications authorities Table 8 – Hong Kong telecoms service revenue and capex – 1994 – 2011 Table 9 – Number of telecoms operators by category – May 2012 Table 10 – Fixed line versus mobile subscriptions and penetration rates – 1998 - 2013 Table 11 – Fixed-line telephony subscribers – 2000 – 2012 Table 12 – External fixed-line telephone traffic volume in minutes – 1997 – 2011 Table 13 – IP telephony subscribers – 2007 - 2012 Table 14 – External telecommunications facilities capacity of Hong Kong – 2000 - 2012 Table 15 – PCCW consolidated revenue, EBITDA and profit US$ – 2001 - 2011 Table 16 – PCCW core revenue US$ – 2006 - 2011 Table 17 – PCCW TSS revenue US$ – 2008 - 2011 Table 18 – PCCW exchange lines in service – 2003 - 2011 Table 19 – PCCW 2G and 3G subscribers – 2005 - 2011 Table 20 – PCCW 3G and blended ARPU – 2007 – 2011 Table 21 – City Telecom revenue and profit – 2001 – 2011 Table 22 – HTHKH revenue and profit – 2006 – 2011 Table 23 – HTHKH mobile service revenue for data, voice, roaming – 2009 – 2011 Table 24 – Hutchison mobile subscribers and annual change – 1998 – 2011 Table 25 – Hutchison 3G mobile subscribers and annual change – 2004 - 2008 Table 26 – HTHKH mobile subscribers 2G and 3G postpaid and total - 2008 - 2011 Table 27 – Hutchison postpaid ARPU – 2010 - 2011 Table 28 – i-Cable revenue and profit – 2005 - 2011 Table 29 – Wharf T&T fixed-line, i-Cable broadband and pay TV subscribers – 2001 - 2011 Table 30 – Hong Kong CSL subscribers and annual change – 1998 - 2005 Table 31 – New World Mobility subscribers and annual change – 1998 - 2005 Table 32 – CSL New World subscribers and annual change – 2006 - 2011 Table 33 – Peoples (China Mobile Hong Kong) subscribers and annual change – 1998 - 2011 Table 34 – SmarTone revenue and profit – 2002 - 2011 Table 35 – SmarTone - ARPU and data contribution – 2002 - 2011 Table 36 – SmarTone subscribers and annual change – 1998 - 2011 Table 37 – SmarTone - 3G subscribers – 2004 - 2011 Table 38 – Internet users and subscribers – 1996 - 2013 Table 39 – Internet traffic volume (PSTN and broadband) – 1997 – 2011 Table 40 – Use of international private leased circuits (IPLCs) – 2002 - 2011 Table 41 – Registered domain names – 2004 – 2012 Table 42 – Broadband internet access subscribers – 2000 - 2013 Table 43 – Narrowband internet access subscribers – 2000 - 2012 Table 44 – Prepaid and leased line internet access subscribers – 2000 – 2012 Table 45 – Broadband subscribers and households – March 2012 Table 46 – Broadband internet traffic volume – 2000 – 2011 Table 47 – Broadband performance pledges – Q1 2011 Table 48 – Digital 21 Strategy – key indicators – June 2012 Table 49 – Broadband ranking evolution top 10 countries – 2008 - 2010 Table 50 – Broadband subscribers by operator – 2007 - 2011 Table 51 – Cable modem internet subscribers – 2000 - 2013 Table 52 – DSL subscribers – 1999 - 2013 Table 53 – FttX subscribers – 2007 - 2013 Table 54 – i-Cable broadband and VoIP subscribers and penetration – 2000 - 2011 Table 55 – i-Cable cable TV subscribers, penetration and ARPU – 1995 - 2011 Table 56 – HKBN triple play subscribers, ARPU and IDD traffic volume – 2003 - 2011 Table 57 – PCCW broadband subscribers – 2000 - 2011 Table 58 – PCCW NOW TV subscribers and ARPU – 2003 - 2011 Table 59 – IPTV subscribers – 2003 - 2011 Table 60 – Cable television subscribers – 2000 - 2010 Table 61 – Broadcasting service statistics – December 2011 Table 62 – TV household penetration by licence type – March 2012 Table 63 – TV channels provided by all TV licensees in Hong Kong – 2000 - 2011 Table 64 – Hong Kong households’ TV coverage by transmission modes – December 2009 Table 65 – Digital terrestrial television population coverage – 2007 - 2010 Table 66 – Pay TV subscribers – 2000 - 2010 Table 67 – Mobile subscribers and annual change – 1984 - 2013 Table 68 – Prepaid and activated SIM cards – 1997 – 2012 Table 69 – Mobile operators, technology, subscribers and annual change – March 2009 Table 70 – Selected mobile operator subscribers and market share – December 2011 Table 71 – Operator market share by subscribers – 2003 – 2011 Table 72 – Total mobile numbers ported – 1999 – 2011 Table 73 – Analogue subscribers and annual change – 1984 - 1997 Table 74 – GSM 2G subscribers and annual change – 1993 - 2011 Table 75 – PCS subscribers and annual change – 1997 - 2008 Table 76 – 2.5G subscribers – 2002 - 2011 Table 77 – 3G mobile subscribers – 2005 - 2011 Table 78 – MVNO subscribers – 2005 – 2012 Table 79 – SMS messages sent and received – 2002 – 2011 Table 80 – SMS statistics for Christmas Day and New Years Day – 2005 - 2012 Table 81 – SMS statistics for Valentine’s Day and Chinese New Year Day – 2006 - 2012 Table 82 – Mobile data usage – 2002 – 2012 Table 83 – Forecast fixed-line subscribers and penetration - higher band – 2011 - 2013; 2017 Table 84 – Forecast fixed-line subscribers and penetration - lower band – 2011 - 2013; 2017 Table 85 – Forecast broadband subscribers and penetration - higher band: 2012 - 2013; 2017 Table 86 – Forecast broadband subscribers and penetration - lower band: 2012 - 2013; 2017 Table 87 – Forecast mobile subscribers and penetration higher band forecast – 2012 - 2013; 2017 Table 88 – Forecast mobile subscribers and penetration lower band forecast – 2012 - 2013; 2017 Chart 1 – Hong Kong service revenue and capex – 1995 - 2011 Chart 2 – Hong Kong fixed-line and mobile subscribers – 1995 - 2013 Chart 3 – Hong Kong fixed-line telephony subscribers – 2000 - 2012 Chart 4 – Hong Kong IP telephony subscribers – 2007 - 2012 Chart 5 – PCCW revenue, capex, ARPU – 2006 - 2011 Chart 6 – Hong Kong internet users, subscribers and user penetration – 1997 - 2011 Chart 7 – Hong Kong international capacity and broadband traffic volume – 2002 - 2011 Chart 8 – Hong Kong broadband internet subscribers and population penetration – 2000 - 2013 Chart 9 – Hong Kong internet subscribers by type – 2000 - 2011 Chart 10 – Hong Kong broadband internet subscribers by access type – 2000 - 2012 Chart 11 – Hong Kong cable modem internet subscribers – 2000 - 2011 Chart 12 – Hong Kong DSL internet subscribers – 2000 - 2011 Chart 13 – Hong Kong cable FttX subscribers – 2007 - 2011 Chart 14 – Hong Kong mobile subscriber growth, population penetration – 1995 - 2011 Chart 15 – Hong Kong mobile operator market share – December 2011 Chart 16 – Hong Kong technology market share – 1990 - 2011 Chart 17 – Hong Kong 3G/4G mobile subscribers – 2005 - 2011 Chart 18 – Quality profile of smartphone users – end 2010 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 – 2012 Exhibit 5 – The ‘original’ PCCW deal Exhibit 6 – HTHKH frequency allocations – 2012 Exhibit 7 –TV broadcasting licensees – June 2012 Exhibit 8 – Transmission modes employed by TV licensees Exhibit 9 – Mobile virtual network operator licensees – May 2011 Exhibit 10 – Top 10 activities on mobile phones versus smartphones – 2010
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