2016 Hong Kong - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Hong Kong broadband market sees data downloads race upwards

Hong Kong’s telecom market continues to develop in line with its status as one of the leading economies in the world. Coming into 2016, over two thirds of fixed broadband connections were fibre, with the remainder a mix of DSL and HFC. This has propelled Hong Kong to boast the highest peak average broadband speeds in the world, surpassing South Korea, Singapore and Japan. Hong Kong has also been claiming a string of ‘firsts’ in the global market, with its innovative approach to testing and implementing the latest technologies and platforms.

Broadband proliferation is not just limited to fixed broadband, with three quarters of the population owning a smartphone. With such widespread access to broadband services it is not surprising that Hong Kong has developed a vibrant digital economy, where over half the population has accessed e-government services and the country’s healthcare system has launched a personal healthcare record, giving patients control over their data and supporting effective and efficient provision of healthcare services. Digital media, often the frontrunner of any digital economy, is well entrenched in Hong Kong with streaming music and video - both legal and illegal - in high demand.

The benefits of integrating technology into utilities is becoming evident; smart grid trials have shown consumers are willing to modify electricity consumption patterns in response to near real time feedback about usage. At the same time the government has taken the first steps towards the coordinated development of a smart city, releasing a blueprint to oversee integration of technology into all aspects of everyday life to improve liveability and sustainability.

Underpinning delivery of these new digital economy services is increasing affordability and sophistication of end user devices and IOT connected sensors as well as continual investment in network infrastructure to connect devices reliably and with minimal delay, through new submarine cables as well as integration of new mobile related technologies designed to improve wireless broadband capacity and service quality.

Key Developments:

• Strong adoption of 3G and LTE;
• Operators have increased network speeds by deploying TDD and FDD aggregation technology;
• Data downloads continue to grow, with the average data downloaded per subscriber running at around 1.4GB per month coming into 2016;
• Hong Kong expands international connectivity with submarine cable AAE-1 set to be ready for service in 2016;
• Local operators are moving quickly to expand Voice over WiFi (VoWiFi) in 2016;
• Hong Kong has implemented a strategy to facilitate the development of data centres;
• The Hong Kong fixed-line market was remaining ‘flat’ with some 3.3 million subscribers, representing a 44% penetration;
• OFCA granted dark fibre provider, Superloop, a unified carrier licence for the Hong Kong market;
• Fibre was accounting for two thirds of all broadband subscriptions as it continued to grow;
• An electronic healthcare record system has been launched in Hong Kong;
• Smart grid trials show consumers adapt behaviour when given feedback on electricity usage;
• A smart city blueprint has been created for a designated area within the territory.

Companies covered in this report include:

PCCW; HKT; CSL; Hong Kong Broadband Network (HKBN); Hutchison Telecom Hong Kong Holdings (3), Hutchison Global Communications Ltd (HGC), China Mobile, China Mobile HK, CITIC Telecom, i-Cable; SmarTone, Vodafone, NOW TV, TVB, ATV, KKBox, Soliton, Spotify, Viu.