Hong Kong Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: April 2024

Report Pages: 181

Analyst: Henry Lancaster

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Summary
Table Of Contents

Hong Kong’s MNOs making use of recently auctioned 5G-suitable spectrum

Hong Kong telecom sector has capitalised on having a liberalised regulatory environment, high-density housing spread across a small geographical area, and a strategic location at the southern tip of China. The territory lies near the top of world rankings for several parameters, including fibre broadband penetration, 5G use, and mobile penetration. Fixed-line teledensity is above 50%, declined 4% in 2022 as consumers continued to transition to mobile and IP platforms.

Darker skies may be forming on the horizon, however. As China tightens its grip on the sovereignty of the territory and imposes political, commercial, and social restrictions that were absent during the British Colonial era, Hong Kong is starting to see its potency as a regional force being eaten away by countries such as Singapore which now offer much greater freedom to operate.

Concerns over national security prompted the US Departments of Justice, Homeland Security, and Defense to prevent the branch line of the newly completed Pacific Light Cable Network (PLCN) linking Los Angeles with Taiwan from being lit. And ongoing issues with the deployment of Huawei technology inside the core infrastructure of telecom networks (something that has been done extensively in Hong Kong, including in its 5G networks) means that the territory – along with its telecom sector – may become increasingly isolated from the rest of the world. Consequently, Hong Kong is likely to drop from its position as a regional leader in the telecom market.

Key Developments

HKBN expands MVNO agreement with HTHK to include 5G mobile and fibre network services.
Unregistered prepaid SIM cards deactivated as from February 2023.
Regulator announces completion of three submarine fibre cables connecting Lamma Island, Cheung Chau, and Peng Chau under the government’s subsidy scheme, with telcos committing to provide a 1Gb/s service to most of the 235 villages affected.
Proposed acquisition of HKBN by I Squared Capital suspended due to low purchase price.
OFCA auctions a further 255MHz of spectrum for 5G use while opening public consultations on reassigning 90MHz of spectrum in the 2.5GHz range from LTE to 5G.
MNOs close GSM networks and repurpose spectrum and infrastructure for LTE and 5G use.
Report update includes the regulator's market data to March 2023, telcos' financial and operating data updates to H1 2023, updated Telecom Maturity Index charts and analyses, and recent market developments.

Key companies mentioned in this report:

Hong Kong Telecom (HKT), Hutchison Telecom (Hutchison 3), SmarTone, China Mobile Hong Kong (CMHK), Hong Kong Broadband Network (HKBN), i-Cable, HGC Global Communications.

Key statistics
Regional Asia market comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Telecommunications market
Regulatory environment

Regulatory authority
Fixed-line developments

Telecom Sector Liberalisation
Universal Service Obligation (USO)
Digital 21 IT Strategy
Fibre infrastructure to villages
Number Portability (NP)

Mobile network developments

Spectrum
SIM card registration
Mobile Number Portability (MNP)

Mobile market

Mobile infrastructure

5G
LTE
3G
GSM
Mobile voice
Mobile data

Mobile broadband
Major mobile operators

Hong Kong Telecom (HKT)
Hutchison Telecom (Hutchison 3, 3 Hong Kong)
SmarTone
China Mobile Hong Kong
Mobile Virtual Network Operators (MVNOs)

Fixed-line broadband market

Fixed broadband service providers
Digital Subscriber Line (DSL) networks
Hybrid Fibre Coax (HFC) networks
Fibre-to-the-Premises (FttP) networks

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

Other fixed broadband services

Wi-Fi

Fixed network operators

Hong Kong Telecom (HKT)
HKBN
Hutchison Telecom Hong Kong Holdings (HTHKH)
HGC Global Communications
i-Cable

Telecommunications infrastructure

International infrastructure

Submarine cable networks
H2
Satellite

Data centres
Smart infrastructure

Smart Cities
IoT

Digital economy

E-Government

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – Hong Kong – 2023 (e)
Table 2 – Development of telecom market revenue and investment (HK$ million) – 2011 – 2022
Table 3 – Change in the number of fixed numbers ported – 2011 – 2023
Table 4 – Change in the number of mobile numbers ported – 2011 – 2023
Table 5 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 6 – Change in the number of mobile subscribers by platform – 2013 – 2023
Table 7 – Change in the number of prepaid and contract mobile subscribers– 2013 – 2023
Table 8 – Increase in the number of HKT’s 5G subscribers– 2020 – 2022
Table 9 – Increase in mobile data traffic – 2013 – 2023
Table 10 – Development of SMS traffic – 2013 – 2023
Table 11 – Development of SMS traffic per subscriber – 2013 – 2023
Table 12 – Growth in the number of mobile broadband subscribers – 2013 – 2023
Table 13 – Growth in the number of active mobile broadband subscribers and penetration – 2012 – 2027
Table 14 – Growth in the number of HKT’s mobile subscribers by type (million) – 2010 – 2022
Table 15 – Development of HKT’s mobile financial data (HK$ million) – 2010 – 2022
Table 16 – Change in the number of 3 Hong Kong’s active mobile subscribers (million) – 2011 – 2022
Table 17 – Development of 3 Hong Kong’s financial data (HK$ million) – 2011 – 2022
Table 18 – Development of 3 Hong Kong’s revenue by type (HK$ million) – 2011 – 2022
Table 19 – Development of 3 Hong Kong’s annualised postpaid ARPU, AMPU (HK$/month) and churn – 2012 – 2022
Table 20 – Growth in the number of SmarTone’s mobile subscribers – 2009 – 2022
Table 21 – Development of SmarTone Group’s financial data (HK$ million) – 2009 – 2023
Table 22 – Change in SmarTone’s mobile ARPU – 2009 – 2022
Table 23 – Change in the number of MVNO subscribers – 2011 – 2023
Table 24 – Growth in the number of HKBN’s mobile subscribers – 2016 – 2023
Table 25 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Table 26 – Growth in the number of residential/business broadband subscribers (million) – 2011 – 2023
Table 27 – Increase in fixed broadband traffic – 2011 – 2023
Table 28 – Decline in the number of dial-up internet connections – 2010 – 2023
Table 29 – Change in the number of residential fixed broadband lines by data rate – 2019 – 2023
Table 30 – Change in the number of business fixed broadband lines by data rate – 2019 – 2023
Table 31 – Decline in the number of HKT’s VDSL subscribers – 2019 – 2022
Table 32 – Growth in the number of HKBN’s broadband subscribers (thousand) – 2010 – 2023
Table 33 – Development of HKBN’s fixed broadband ARPU (HK$/month) – 2014 – 2023
Table 34 – Development of HKBN’s financial data (HK$ million) – 2014 – 2023
Table 35 – Development of HKBN’s financial data by segment (HK$ million) – 2016 – 2023
Table 36 – Growth in the number of HKT’s fixed broadband subscribers (thousand) – 2011 – 2022
Table 37 – Growth in the number of HKT’s fibre broadband subscribers – 2011 – 2022
Table 38 – Change in the number of i-Cable’s broadband subscribers – 2011 – 2022
Table 39 – Growth in the number of public Wi-Fi access points and Wi-Fi zones – 2011 – 2023
Table 40 – Growth in the number of HKT’s telecom service revenue (HK$ million)– 2017 – 2022
Table 41 – Growth in the number of HKBN’s networked premises – 2014 – 2023
Table 42 – Growth in the number of HKBN’s fixed-voice subscribers – 2015 – 2023
Table 43 – Change in the number of i-Cable’s subscribers by service (thousand) – 2011 – 2022
Table 44 – Development of i-Cable’s subscribers financial data (HK$ million) – 2017 – 2022
Table 45 – Decline in the number of fixed lines and teledensity– 2012 – 2027
Table 46 – Increase in international bandwidth – 2010 – 2021
Table 47 – Growth in equipped and activated internet bandwidth capacity (Tb/s) – 2010 – 2022
Table 48 – Growth in equipped and activated satellite bandwidth capacity (Gb/s) – 2010 – 2023
Table 49 – Historic - Fixed numbers ported – 2005 – 2010
Table 50 – Historic - Total mobile numbers ported – 2000 – 2010
Table 51 – Historic - Mobile subscribers, annual change, and penetration – 1984 – 2010
Table 52 – Historic - HKT prepaid and postpaid subscribers (million) – 2005 – 2008
Table 53 – Historic - 3 Hutchison mobile subscribers (million) – 1998 – 2010
Table 54 – Historic - 3 Hutchison - mobile subscribers 2G and 3G postpaid and total – 2008 – 2014
Table 55 – Historic - China Mobile Hong Kong - subscribers – 2007 – 2010
Table 56 – Historic - MVNO subscribers – 2007 – 2010
Table 57 – Historic - Fixed broadband subscribers and penetration – 2000 – 2010
Table 58 – Historic - Fixed broadband residential / business internet subscribers – 2000 – 2010
Table 59 – Historic - Residential broadband subscriptions by technology platform (thousand) – 2010 – 2014
Table 60 – Historic - Residential broadband ARPU – 2010 – 2013
Table 61 – Historic - HKT broadband subscribers (thousand) – 2007 – 2010
Table 62 – Historic - Wi-Fi access points and Wi-Fi zones – 2007 – 2010
Table 63 – Historic - i-Cable subscribers per service – 2002 – 2010
Table 64 – Historic - Fixed lines in service and penetration – 2007 – 2010
Table 65 – Historic - Fixed-line telephony subscribers (million) – 2000 – 2010

List of Charts

Chart 1 – Asia Telecoms Maturity Index – Market Leaders
Chart 2 – Asia Telecoms Maturity Index – Market Challengers
Chart 3 – Asia Telecoms Maturity Index – Market Emergents
Chart 4 – Asia – Telecoms Maturity Index vs GDP per capita
Chart 5 – Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 6 – Northern Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 7 – Northern Asia – Fixed and mobile broadband penetration
Chart 8 – Development of telecom market revenue and investment – 2011 – 2022
Chart 9 – Change in the number of fixed numbers ported – 2011 – 2023
Chart 10 – Change in the number of mobile numbers ported – 2011 – 2023
Chart 11 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 12 – Change in the number of mobile subscribers by platform – 2013 – 2023
Chart 13 – Change in the number of prepaid and contract mobile subscribers– 2013 – 2023
Chart 14 – Increase in mobile data traffic – 2013 – 2023
Chart 15 – Development of SMS traffic – 2013 – 2023
Chart 16 – Development of SMS traffic per subscriber – 2013 – 2023
Chart 17 – Growth in the number of mobile broadband subscribers – 2013 – 2023
Chart 18 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Chart 19 – Growth in the number of HKT’s mobile subscribers by type – 2010 – 2022
Chart 20 – Development of HKT’s mobile financial data – 2010 – 2022
Chart 21 – Change in the number of 3 Hong Kong’s mobile subscribers – 2011 – 2022
Chart 22 – Development of 3 Hong Kong’s financial data – 2011 – 2022
Chart 23 – Development of 3 Hong Kong’s revenue by type – 2016 – 2022
Chart 24 – Development of 3 Hong Kong’s annualised postpaid ARPU, AMPU (HK$/month) – 2012 – 2022
Chart 25 – Growth in the number of SmarTone’s mobile subscribers – 2009 – 2022
Chart 26 – Development of SmarTone’s financial data – 2014 – 2023
Chart 27 – Change in SmarTone’s mobile ARPU – 2009 – 2023
Chart 28 – Change in the number of MVNO subscribers – 2011 – 2023
Chart 29 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Chart 30 – Growth in the number of residential/business broadband subscribers – 2011 – 2023
Chart 31 – Increase in fixed broadband traffic – 2011 – 2023
Chart 32 – Decline in the number of dial-up internet connections – 2010 – 2023
Chart 33 – Change in the number of residential fixed broadband lines by data rate – 2019 – 2023
Chart 34 – Change in the number of business fixed broadband lines by data rate – 2019 – 2023
Chart 35 – Growth in the number of HKBN’s broadband subscribers – 2010 – 2023
Chart 36 – Development of HKBN’s fixed broadband ARPU – 2014 – 2023
Chart 37 – Development of HKBN’s financial data – 2014 – 2023
Chart 38 – Development of HKBN’s financial data by segment – 2016 – 2023
Chart 39 – Growth in the number of HKT’s fixed broadband subscribers – 2011 – 2022
Chart 40 – Growth in the number of HKT’s fibre broadband subscribers – 2011 – 2022
Chart 41 – Change in the number of i-Cable’s broadband subscribers – 2011 – 2022
Chart 42 – Growth in the number of public Wi-Fi access points and Wi-Fi zones – 2011 – 2023
Chart 43 – Growth in the number of HKT’s telecom service revenue (HK$ million)– 2017 – 2022
Chart 44 – Growth in the number of HKBN’s networked premises – 2014 – 2023
Chart 45 – Growth in the number of HKBN’s fixed-voice subscribers – 2015 – 2023
Chart 46 – Change in the number of i-Cable’s subscribers by service – 2011 – 2022
Chart 47 – Development of i-Cable’s subscribers financial data (HK$ million) – 2017 – 2022
Chart 48 – Decline in the number of fixed lines and teledensity – 2012 – 2027
Chart 49 – Increase in international bandwidth – 2010 – 2021
Chart 50 – Growth in equipped and activated internet bandwidth capacity – 2010 – 2022
Chart 51 – Growth in equipped and activated satellite bandwidth capacity – 2010 – 2022

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Asia
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Asia – Market Leaders and market developments
Exhibit 4 – Asia – Market Challengers and market developments
Exhibit 5 – Asia – Market Emergents and market developments
Exhibit 6 – 2.5GHz auction results – 2009
Exhibit 7 – 2.3GHz auction results – 2011
Exhibit 8 – 3.3GHz auction results - 2019
Exhibit 9 – 3.5GHz auction results - 2019
Exhibit 10 – 4.9GHz auction results - 2019
Exhibit 11 – HTHKH’s frequency allocations
Exhibit 12 – SmarTone’s spectrum holdings
Exhibit 13 – Fixed carrier licensees
Exhibit 14 – Major submarine cables with landing points in Hong Kong

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Hong Kong Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Hong Kong’s MNOs making use of recently auctioned 5G-suitable spectrum

Key Developments

Key companies mentioned in this report:

Key statistics

Regional Asia market comparison

Country overview

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network operators

Telecommunications infrastructure

Digital economy

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views