Hong Kong Telecommunications Report

Providing expert analysis, independent forecasts and competitive intelligence on the telecommunications industry.

Report includes: BMI Industry View, Industry SWOT Analysis, BMI Industry Forecast Scenario, Telecommunications Risk Reward Index, Market Overview, Regulatory Environment, Company Profiles and Competitive

Why you should buy this report

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  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position.
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Hong Kong Telecommunications Report
Product Price
$1,295.00

BMI View: A decline in total mobile subscribers is attributable to high market saturation, which cannot sustain further growth in light of Hong Kong's slowing economic growth. Operators are deriving growth by migrating subscribers on to greater revenue-generating networks such as LTE. In addition, the potential for postpaid subscribers to outnumber prepaid ones will remove some subscriber number volatility and reduce churn rates for operators in the longer term. This change in the mobile landscape will also buoy average revenues per user (ARPU).

Operators Combat Market Saturation With LTE
Hong Kong Mobile Market Forecasts
f=BMI forecast. Source: Operators/BMI research

Latest Updates & Industry Developments

  • Latest data from the OFCA showed there were 16.72mn mobile subscribers at the end of August 2015, down by 1.7% y-o-y. W e forecast 16.85mn mobile subscribers by the end of our five-year forecast period in 2019, for a penetration rate of 224.4%. The highly saturated mobile market provides little room for subscriber growth, and will revenue growth will come from migrating subscribers on to postpaid plans and encouraging consumption of more value-added services.

  • In wireline, the focus is on FTTH as subscribers demand faster and more reliable fixed network connections. Based on full year data from the regulator for broadband subscribers, we forecast the number of broadband internet subscriptions to reach 2.57mn by 2019, a 34.3% penetration rate.

BMI Industry View
7
SWOT
8
Telecoms
8
Political
10
Economic
11
Operational Risk
12
Industry Forecast
14
Mobile
14
Table: Telecoms Sector - Historical Data & Forecasts (Hong Kong 2012-2019)
14
Wireline
17
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Hong Kong 2013-2019)
17
Industry Risk Reward Ratings
20
Asia Pacific Risk/ Reward Index - Q4 2015
20
Outperformers (1-10)
21
Average-Performers (11-20)
22
Underperformers (21-28)
23
Table: Asia Pacific Telecoms Risk/Reward Index - Q415
24
Market Overview
26
Regional Perspective
26
Table: Hong Kong Mobile Market Regional Comparison, 2013
27
Market Growth
28
ARPU
30
Networks
32
Regulatory Development
38
Regulatory Overview
38
Table: Hong Kong Regulatory Bodies And Their Responsibilities
38
Spectrum Release Plan (2013-2015)
39
Table: Hong Kong Spectrum Release Plan For 2013-2015
40
Regulatory Developments
41
Competitive Landscape
45
Table: Key Players - Hong Kong Telecoms Market
45
Table: Operator Revenues (USDmn)
45
Table: Hong Kong Mobile Market Overview
46
Table: CSL
46
Table: Hutchison Telecommunications Hong Kong Holdings (3 Hong Kong)
47
Table: China Mobile Hong Kong
48
Table: SmarTone Hong Kong
48
Table: PCCW Mobile
50
Company Profiles
52
CSL
52
Hutchison Telecommunications Hong Kong Holdings (HTHKH)
55
PCCW
60
SmarTone Telecommunications
65
Demographic Forecast
68
Table: Population Headline Indicators (Hong Kong 1990-2025)
69
Table: Key Population Ratios (Hong Kong 1990-2025)
69
Table: Urban/Rural Population And Life Expectancy (Hong Kong 1990-2025)
70
Table: Population By Age Group (Hong Kong 1990-2025)
70
Table: Population By Age Group % (Hong Kong 1990-2025)
71
Glossary
73
Table: Glossary Of Terms
73
Methodology
75
Industry Forecast Methodology
75
Sources
77
Risk/Reward Index Methodology
77
Table: Risk/Reward Index Indicators
78
Table: Weighting Of Indicators
79

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.