10 Eye-Opening Facts About the Telecommunications Market in Hong Kong You Need to Know!

In a recent report, analysts at GlobalData have provided insightful projections regarding the telecom and pay-TV services revenue in Hong Kong. Here’s what you should know:

1. Steady Growth Ahead

The telecom and pay-TV services revenue in Hong Kong is expected to grow at a CAGR (Compound Annual Growth Rate) of 1.8% from 2024 to 2029. This growth will primarily be driven by the increasing demand for mobile data and fixed broadband services.

2. Declining Mobile Voice Services

While mobile data continues to thrive, mobile voice service revenues are projected to decline at a CAGR of 2.1% over the same period. This is largely due to consumers opting for over-the-top (OTT) communication platforms, leading to a drop in mobile voice Average Revenue Per User (ARPU).

3. Mobile Data Boom

Meanwhile, mobile data revenue is forecasted to rise at a CAGR of 3.4%. This surge is driven by a significant increase in mobile internet subscriptions, higher mobile data ARPU, and a widespread adoption of 5G technology.

4. The Shift from 4G to 5G

As of 2024, 4G services currently dominate mobile subscriptions; however, this share is on the decline as users increasingly transition to 5G services to enjoy better connectivity and speed.

5. Consumer Demand for 5G

The rapid growth in 5G subscriptions can be attributed to the burgeoning demand for high-speed internet, expanded 5G coverage, and enticing promotional deals on 5G plans and devices.

6. New Spectrum Allocation

The recent allocation of 300 MHz spectrum in the 6/7 GHz band by the Office of the Communications Authority (OFCA) in 2024 is set to hasten the rollout of 5G networks, boosting adoption rates and enabling cutting-edge use cases.

7. Fixed Voice Services Decline

Fixed voice service revenue is also on the decline, plagued by losses in circuit-switched subscriptions and diminishing fixed voice ARPU.

8. Fixed Broadband Services Thriving

On the upside, fixed broadband service revenue is anticipated to grow at a CAGR of 3.3%, bolstered by an increase in fiber broadband subscriptions. This growth is fueled by government initiatives and telecom operators working together to enhance infrastructure.

9. Government Initiative for Fiber Connectivity

The OFCA's subsidy scheme aimed at deploying fiber-optic networks has been instrumental in bringing connectivity to 176 underserved villages, with intentions to cover all remaining villages by 2026.

10. The Pay-TV Challenge

As consumers increasingly shift to OTT video platforms, the revenue for pay-TV services is expected to contract as well. Notably, China Mobile Hong Kong and PCCW remain key players in mobile and fixed broadband segments, respectively, helping them navigate these changes.

As the landscape of telecommunications in Hong Kong continues to evolve, staying informed on these trends is crucial for consumers and businesses alike. The future is undeniably leaning towards more data-centric services and advanced connectivity solutions!