Hong Kong Telecommunications Report

Published 16 June 2015

  • 102 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
$1,295.00
Hong Kong Telecommunications Report

BMI View: Mobile market growth stalled in 2014 and consequently BMI does not believe that there is much scope for organic growth i n the Hong Kong mobile market. However, the recent spectrum auction will boost 4G usage as data usage is expected to be one of the key drivers for Hong Kong's telecoms sector over the next few years. This is also likely to reflect on the increasing revenues of the operators. The Hong Kong government is actively promoting the territory as a regional hub for data centres, and BMI believes Hong Kong has the right characteristics to attract data centre investments .

Key Data

  • Latest data from the OFCA showed there were 17.372mn mobile subscribers at the end of 2014, up 1.0% over the year. We forecast 18.889mn mobile subscribers by the end of our five-year forecast in 2019, a 251.7% penetration rate.

  • Based on full year data from the regulator for broadband subscribers, we forecast the number of broadband internet subscriptions to reach 2.665mn by 2019, a 35.5% penetration rate.

Risk/Reward Index

Hong Kong remains in fourth position in BMI's Asia Pacific Telecoms Risk/Reward Index, with a telecoms rating score of 62.6, slightly lower than the previous quarter.

Key Trends And Developments

BMI's forecasts that China Mobile will secure the lion's share of the 1,900-2,100MHz spectrum at auction in late 2014 came true. China Mobile purchased two lots of 2.1 GHz spectrum in December 2014. However, purchasing two blocks instead of three indicates that China Mobile does not seek to aggressively expand its 3G market share and thus will not look to aggressively cut prices for 3G when it acquires 2.1GHz spectrum in 2016. The additional resources would help it to improve its quality of service by augmenting its 4G hybrid network and gain market share. SmarTone and Hutchison Telephone Company Limited (HTCL) also acquired some spectrum. Hutchinson and SmarTone have commented that they plan to refarm their acquired 2,100MHz...

BMI Industry View
7
SWOT
9
Mobile SWOT
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Mobile
15
Table: Telecoms Sector - Historical Data & Forecasts (Hong Kong 2012-2019)
15
Wireline
18
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Hong Kong 2013-2019)
19
Industry Risk Reward Ratings
21
Industry Risk Reward Index
21
Table: Asia-Pacific Telecoms Risk/Reward Index, Q315
26
Market Overview
28
Mobile
28
Regional Perspective
28
Table: Hong Kong Mobile Market Regional Comparison, 2013
29
Market Growth
30
ARPU
31
Networks
33
Table: Hong Kong Mobile Market Overview
41
Table: CSL
41
Table: Hutchison Telecommunications Hong Kong Holdings (3 Hong Kong)
42
Table: China Mobile Hong Kong
43
Table: SmarTone Hong Kong
43
Table: PCCW Mobile
44
Asia Mobile Content
46
Wireline
50
Table: PCCW Fixed-Line Service Revenue Breakdown (HKDmn)
52
Broadband
52
Industry Trends And Developments
56
Table: Telecoms Market Developments
59
Regulatory Development
61
Regulatory Overview
61
Table: Hong Kong Regulatory Bodies And Their Responsibilities
61
Spectrum Release Plan (2013-2015)
62
Table: Hong Kong Spectrum Release Plan For 2013-2015
63
Regulatory Developments
64
Competitive Landscape
68
Table: Key Players - Hong Kong Telecoms Market
68
Table: Operator Revenues (USDmn)
68
Company Profiles
69
Hutchison Telecommunications Hong Kong Holdings (HTHKH)
69
PCCW
74
CSL
79
SmarTone Telecommunications
83
Regional Overview
87
Table: Nokia Networks - Selected Asian Contracts/Deals, 2014-15
90
Demographic Forecast
91
Table: Population Headline Indicators (Hong Kong 1990-2025)
92
Table: Key Population Ratios (Hong Kong 1990-2025)
92
Table: Urban/Rural Population And Life Expectancy (Hong Kong 1990-2025)
93
Table: Population By Age Group (Hong Kong 1990-2025)
93
Table: Population By Age Group % (Hong Kong 1990-2025)
94
Glossary
96
Table: Glossary Of Terms
96
Methodology
98
Industry Forecast Methodology
98
Sources
100
Risk/Reward Index Methodology
100
Table: Risk/Reward Index Indicators
101
Table: Weighting Of Indicators
102

The Hong Kong Telecommunications Report features BMI Research's independent industry forecasts on the future strength of Hong Kong's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's Hong Kong Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Hong Kong.

Key Benefits

  • Benchmark BMI's independent telecoms industry forecasts for Hong Kong to test other views - a key input for successful budgeting and strategic business planning in the Hong Kong telecoms market.
  • Target business opportunities and risks in Hong Kong's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Hong Kong.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

BMI Industry Forecast Scenario

Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

  • Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
  • Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
  • Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.

BMI’s Telecommunications Risk Reward Index

BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.

Market Data Analysis

Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:

  • Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
  • Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
  • Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
    Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).

Regulatory Environment

Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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