Hong Kong - Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Overview

This report provides a comprehensive overview of trends and developments in Hong Kong’s telecommunications market. The report analyses the Telecoms Infrastructure, mobile, fixed broadband, Digital Media and Digital Economy sectors. Subjects include:

Market and industry analyses, trends and developments;
Regional market comparisons
Telecoms Maturity Index
Data centres and smart Infrastructure;
Major players, revenues, subscribers, ARPU;
Broadband (FTTH, DSL);
Internet of Things, 5G developments
Mobile, broadband and mobile broadband forecasts to 2023-4.

Reseracher:- Phil Harpur
Current publication date:- August 2019 (25th Edition)

Executive Summary

Hong Kong takes strong steps towards launching 5G mobile services

Hong Kong possesses a small but well-developed mobile market and a number of Mobile Virtual Network Operators (MVNOs). Intense competition within a small market has led to consolidation, with the number of mobile network operators reduced to four.

Mobile subscriber penetration is now well over 200% due to the high number of tourists visiting Hong Kong and high number of local residents with more than one mobile device. Mobile subscriber growth is expected to be relatively low over the next five years to 2024 due to a highly mature and highly competitive market.

Mobile broadband subscriber growth is expected to be relatively low over the next five years to 2024 due to a highly mature mobile subscriber market, with a significant proportion of subscribers already having mobile broadband access.

The government of Hong Kong expects the territory to be among the world’s earliest adopters of 5G mobile technology in 2020. During 2018-19, a number of Hong Kong Mobile Operators are paving the way for the introduction of 5G services. China Mobile Hong Kong (CMHK) has tested an end-to-end 5G network using Customer Premises Equipment (CPE) enabling in-home high-speed Wi-Fi internet access to end-users.

The extensive roll-out of fixed broadband infrastructure has allowed Hong Kong to provide almost all households with access to high-speed broadband connectivity. Internationally, Hong Kong’s broadband penetration rate is among the highest in the world.

Broadband investment initially focused on DSL and HFC technology platforms although operators have switched focus to higher bandwidth fibre access platforms, due to inherent advantage of fibre access networks over competing platforms, especially in the geographically compact territory of Hong Kong.

Fixed-line broadband market penetration has grown slowly over the past five years in a highly mature market. Over the next five years to 2024 growth is expected to continue to increase slowly.

Demand for broadband is driven by consumption of bandwidth-intensive online services such as OTT video, music and games; the proliferation of Internet connected devices including TVs, smartphones, tablets and PCs; and increasing usage of corporate broadband services that include cloud services and software.

Underpinned by widely accessible, fast and affordable fixed and mobile broadband services, Hong Kong has developed into a digital economy to improve socio-economic development. Technology has been utilised to improve the quality, accessibility and affordability of commerce, government services, healthcare, education and utilities.

Hong Kong’s small size and high population density has enabled the country to extensively rollout fixed broadband infrastructure and provide almost all households with access to high-speed broadband connectivity. This has propelled Hong Kong to boast the highest peak average broadband speeds in the world.

International internet connectivity continues to grow, driven by Hong Kong’s status as an international financial hub and its location next to China.

Fixed line growth in Hong Kong has declined over the past five years as consumers migrate to wireless voice and data services. This trend is predicted to continue over the next five years to 2024.

While current data centre sites are sufficient to support immediate demand, Hong Kong needs cheaper land options for data centre usage and government support to achieve its long-term goal as a data centre hub and smart city.

The government has taken steps towards coordinated development of a smart city. The Hong Kong government announced a range of measures in six areas, including “Smart Mobility”, “Smart Living”, and “Smart Environment”, which will be introduced over the next few years to 2024.

Underpinning delivery of 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 end-user devices as well as integration of new mobile related technologies designed to improve wireless broadband capacity and service quality.

Key Developments

Hong Kong expects the territory to be among the world's earliest adopters of 5G mobile technology in 2020.
CMHK claimed to be the first operator in Hong Kong to test an end-to-end 5G network using Customer Premises Equipment (CPE).
Mobile broadband subscriber growth is expected to be relatively low over the next five years to 2024.
Fixed-line broadband market penetration has grown slowly over the past five years in a highly mature market.
HGC Global Communications is looking to 5G as a key opportunity for its fibre business.
Fixed line growth in Hong Kong has declined over the past five years. This trend will continue over the next five years to 2024.

Key companies mentioned in this report:

Hong Kong Telecom (HKT), Hutchison Telecom Hong Kong Holdings (3), SmarTone, Vodafone, China Mobile, China Mobile HK, CITIC Telecom, CSL; Hong Kong Broadband Network (HKBN); i-Cable, HGC Global Communications.

Phil Harpur
August 2019

Table of Contents

Key statistics
Telecommunications market

Market overview and analysis
Regional Asian Market Comparison

Regulatory environment

Historical overview
Regulatory authority
Government policies

Fibre Infrastructure to Villages
Telecom Sector Liberalisation
Universal Service Obligation (USO)
Digital 21 IT Strategy
FttB/FttH building registration scheme
Number Portability (NP)

Fixed network operators

Introduction
Hong Kong Telecom (HKT)

Company overview
Company background

Hong Kong Broadband Network (HKBN)
Hutchison Telecom Hong Kong Holdings (HTHKH)

Company overview
Company background

HGC Global Communications
i-Cable

Telecommunications infrastructure

Overview of the national telecom network

Fixed-line statistics

International infrastructure

Submarine cable networks

Data centres

Overview

Smart infrastructure

Introduction
IoT
Smart Grids
Smart Cities

Broadband market

Market overview and analysis
Fixed broadband statistics and forecasts
Fixed broadband service providers
Hybrid Fibre Coax (HFC) networks
Digital Subscriber Line (DSL) Networks
Fibre-to-the-Premises (FttP)

Overview
Hong Kong Broadband Network (HKBN)
Hong Kong Telecom (HKT)
i-Cable

Other fixed broadband services

WiFi

Digital economy

E-Government

Mobile communications

Market overview and analysis
Mobile statistics and forecasts
Mobile broadband statistics and forecasts
Regulatory issues

Licensing
Spectrum
Mobile Number Portability (MNP)

Mobile infrastructure

2G
3G
4G
5G
Voice over LTE (VoLTE)

Major mobile operators

Operator statistics
Hong Kong Telecom (HKT)
Hutchison Telekom (3 Hutchison)
SmarTone
China Mobile Hong Kong
Mobile Virtual Network Operators (MVNO)

List of Tables

Table 1 – Country Statistics, Major Operators and Telco Authorities – 2019 (e)
Table 2 – Top Level Country Statistics – 2019 (e)
Table 3 – Historic - Total fixed numbers ported – 2005 – 2016
Table 4 – i-Cable subscribers per service – 2008 – 2017
Table 5 – Fixed Line Subscriptions and Penetration – 2007 – 2019
Table 6 – Historic - Fixed-line telephony subscribers – 2000 – 2015
Table 7 – International bandwidth – 2013 – 2019
Table 8 – Fixed Broadband Subscribers and Penetration (with Forecast) – 2007 – 2024
Table 9 – Internet Users and Penetration – 2007 – 2019
Table 10 – Historic - Fixed broadband internet access subscribers – 2000 – 2016
Table 11 – Historic - Residential broadband subscriptions by technology platform – 2010 – 2016
Table 12 – Historic - Residential broadband ARPU – 2010 – 2016
Table 13 – HKT - broadband subscribers (thousands) – 2007 – 2018
Table 14 – FTTH and FTTB household penetration rate – 2018
Table 15 – Hong Kong Broadband Network (HKBN) –Revenue and EBITDA – 2016 – 2018
Table 16 – Hong Kong Broadband Network (HKBN) – broadband subscribers (thousands) – 2010 – 2018
Table 17 – HKBN – ARPU - Residential and Enterprise – 2017 – 2018
Table 18 – HKT – total broadband subscribers (millions) – 2011 – 2018
Table 19 – HKT – fibre broadband subscribers – 2003 – 2018
Table 20 – HKT – High speed consumer -fibre broadband + VDSL subscribers – 2016 – 2018
Table 21 – Number of public WiFi access point and WiFi zones – 2007 – 2018
Table 22 – Mobile Subscribers and Penetration (with Forecast) – 2007 – 2024
Table 23 – Historic - Mobile subscribers, annual change and penetration – 1984 – 2006
Table 24 – Mobile Broadband Subscribers and Penetration (with Forecast) – 2009 - 2024
Table 25 – Historic - Total mobile numbers ported
Table 26 – Mobile operators - subscribers and market share – 2019
Table 27 – HKT - prepaid and postpaid subscribers – 2005 – 2019
Table 28 – HKT - financial data - (HK$ million) – 2016 – 2018
Table 29 – 3 Hutchison - mobile subscribers – 1998 – 2019
Table 30 – Historic – 3 Hutchison - mobile subscribers 2G and 3G postpaid and total
Table 31 – 3 Hutchison – Revenue – 2018 - 2019
Table 32 – 3 Hutchison - postpaid ARPU, AMPU and churn – 2010 – 2018
Table 33 – SmarTone financial data – 2009 – 2018
Table 34 – SmarTone – Blended ARPU – 2009 – 2018
Table 35 – SmarTone mobile subscribers (millions)– 2009 – 2019
Table 36 – SmarTone spectrum holdings – January 2015
Table 37 – China Mobile Hong Kong – subscribers – 2007 – 2018
Table 38 – Historic - MVNO subscribers – 2007 – 2016

List of Charts

Chart 1 – Mobile, Mobile Broadband & Fixed Broadband Penetration – 2019; 2024
Chart 2 – Asian Telecoms Maturity Index by Market Category
Chart 3 – Asian Telecoms Maturity Index vs GDP per Capita
Chart 4 – Telecoms Maturity Index – Northern Asia
Chart 5 – Fixed Line Subscriptions and Penetration – 2007 – 2019
Chart 6 – Fixed Broadband Subscribers and Penetration (with Forecast) – 2009 – 2024
Chart 7 – Internet Users and Penetration – 2007 – 2019
Chart 8 – Mobile Subscribers and Penetration (with Forecast) – 2009 – 2024
Chart 9 – Mobile Broadband Subscribers and Penetration (with Forecast) – 2010 - 2024

List of Exhibits

Exhibit 1 – Key Market Characteristics by Market Segment
Exhibit 2 – Northern Asia - Key Characteristics of Telecoms Markets by Country
Exhibit 3 – Major submarine cables with landing points in Hong Kong
Exhibit 4 – HTHKH frequency allocations – 2015

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Annual Publication Profile

Technologies

Broadband Fixed
Broadcasting
Companies (Major Players)
Digital Media
Internet
Mobile & Wireless Broadband and Media
Mobile Communications (voice and infrastructure)
Regulations & Government Policies
Strategies & Analyses (Industry & Markets)
Telecoms Infrastructure

Number of pages 121

Status Current

Last updated 14 Aug 2019
Update History

Analyst: Phil Harpur

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