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...

Table of Contents

BMI Industry View
7
SWOT
9
Mobile SWOT
9
Wireline SWOT
11
Political
13
Economic
14
Operational Risk
15
Industry Forecast
17
Mobile
17
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (Hong Kong 2012-2019)
17
ARPU
19
Wireline
21
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Hong Kong 2012-2019)
21
Industry Risk Reward Ratings
23
Industry Risk Reward Index
23
Table: Asia-Pacific Telecoms Risk/Reward Index, Q215
27
Market Overview
29
Mobile
29
Regional Perspective
29
Table: Hong Kong Mobile Market Regional Comparison, 2013
30
Market Growth
31
ARPU
32
Networks
34
Table: Hong Kong Mobile Market Overview
42
Table: CSL
42
Table: Hutchison Telecommunications Hong Kong Holdings (3 Hong Kong)
44
Table: China Mobile Hong Kong
45
Table: SmarTone Hong Kong
45
Table: PCCW Mobile
47
Asia Mobile Content
48
Wireline
51
Table: PCCW Fixed-Line Service Revenue Breakdown (HKDmn)
54
Broadband
54
Industry Trends And Developments
58
Table: Telecoms Market Developments
61
Regulatory Development
63
Regulatory Overview
63
Table: Hong Kong Regulatory Bodies And Their Responsibilities
63
Spectrum Release Plan (2013-2015)
64
Table: Hong Kong Spectrum Release Plan For 2013-2015
65
Regulatory Developments
66
Competitive Landscape
70
Table: Key Players - Hong Kong Telecoms Market
70
Table: Operator Revenues (USDmn)
70
Company Profiles
71
Hutchison Telecommunications Hong Kong Holdings (HTHKH)
71
PCCW
77
CSL
81
SmarTone Telecommunications
85
Regional Overview
89
Table: Ericsson Key Asia Contracts/Trials Announced, 2015
92
Demographic Forecast
94
Table: Population Headline Indicators (Hong Kong 1990-2025)
95
Table: Key Population Ratios (Hong Kong 1990-2025)
95
Table: Urban/Rural Population And Life Expectancy (Hong Kong 1990-2025)
96
Table: Population By Age Group (Hong Kong 1990-2025)
96
Table: Population By Age Group % (Hong Kong 1990-2025)
97
Glossary
99
Table: Glossary Of Terms
99
Methodology
101
Industry Forecast Methodology
101
Sources
103
Risk/Reward Index Methodology
103
Table: Risk/Reward Index Indicators
104
Table: Weighting Of Indicators
105

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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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc