Business Monitor International


Hong Kong Telecommunications Report

Published 26 September 2014

  • 89 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: Data usage is expected to be one of the key drivers for H ong Kong's telecoms sector over the next few years. 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, given its safe business environment, reliable power supply and highly educated workforce. Telecoms operators benefit from the usage of their network infrastructure when demand for data centres increase. For the mobile sector, operators are looking to upgrade users to higher value 3G/4G service plans to offset the loss of voice and SMS revenues to free messaging applications.

Key Data

  • Mobile subscriptions continued to grow despite the high penetration rate. We forecast 18.702mn mobile subscribers by the end of our five-year forecast in 2018, a 250.7% penetration rate.

Based on full year data from the regulator for broadband subscribers, we forecast the number of broadband internet subscriptions to reach 2.587mn by 2018, a 34.7% penetration rate.

Risk/Reward Ratings

Hong Kong remains in fourth position in BMI's Asia Pacific Telecoms Risk/Reward Ratings with a telecoms rating score of62.7, slightly lower than the previous quarter.

Key Trends And Developments

In May 2014, Hong Kong Telecom (HKT) finalised a USD2.245bn deal to reacquire mobile network operator CSL, which makes the incumbent the clear leader in Hong Kong's highly competitive and saturated market and augments its ability to offer comprehensive converged fixed-mobile services to consumers and businesses. HKT's principal shareholder, PCCW Ltd, was expected to hold a market share of around 31% out of a total subscription base of 17.445mn post-acquisition. The deal was approved by the regulator Office of the Communications Authority (OFCA) in May 2014 on condition that the merged entity divests a total of 29.6MHz of their combined 3G spectrum, not by renewing the assignment of and not...

Table of Contents

BMI Industry View
7
SWOT
9
SWOT
11
Political
13
Economic
14
Business Environment
15
Industry Forecast
16
Mobile
16
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (Hong Kong 2011-2018)
16
ARPU
17
Wireline
19
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Hong Kong 2011-2018)
19
Industry Risk Reward Ratings
21
Table: Asia Pacific Telecoms Risk/Reward Ratings - Q3 2014
25
Market Overview
26
Mobile
26
Regional Perspective
26
Table: Hong Kong Mobile Market Regional Comparison, 2013
27
Market Growth
28
ARPU
29
Networks
31
Table: Hong Kong Mobile Market Overview
37
Table: CSL
37
Table: Hutchison Telecommunications Hong Kong Holdings (3 Hong Kong)
38
Table: China Mobile Hong Kong
40
Table: SmarTone Hong Kong
40
Table: PCCW Mobile
42
Asia Pacific Mobile Content
44
Tablets Are The New TV
46
Table: Percentage Of Long-Form Video Views By Device
48
Infrastructure Is A Key Enabler
48
Wireline
50
Table: PCCW Fixed-Line Service Revenue Breakdown (HKDmn)
52
Broadband
52
Industry Trends And Developments
55
Table: Telecoms Market Developments
56
Regulatory Development
58
Regulatory Overview
58
Table: Hong Kong Regulatory Bodies And Their Responsibilities
58
Spectrum Release Plan (2013-2015)
59
Table: Hong Kong Spectrum Release Plan For 2013-2015
60
Regulatory Developments
61
Competitive Landscape
65
Table: Key Players - Hong Kong Telecoms Market
65
Table: Operator Revenues (USDmn)
65
Company Profiles
66
Hutchison Telecommunications Hong Kong Holdings (HTHKH)
66
PCCW
71
CSL
76
SmarTone Telecommunications
80
Regional Overview
84
Industry Trend Analysis
84
Table: Strategies Of Asian Top Chat Apps
85
Demographic Forecast
90
Table: Hong Kong's Population By Age Group, 1990-2020 ('000)
91
Table: Hong Kong's Population By Age Group, 1990-2020 (% of total)
92
Table: Hong Kong's Key Population Ratios, 1990-2020
93
Table: Hong Kong's Rural And Urban Population, 1990-2020
93
Glossary
94
Table: Glossary Of Terms
94
Methodology
96
Industry Forecast Methodology
96
Sources
97
Risk/Reward Ratings Methodology
98
Table: Risk/Reward Ratings Indicators
99
Table: Weighting Of Indicators
100

The Hong Kong Telecommunications Report features Business Monitor International (BMI)'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 ICT, fixed-line, mobile (including 3G), 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.

Business Environment Rankings

BMI's Telecommunications Business Environment Rankings provides a country-comparative Risk-Reward Rankings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.

The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for all key industry indicators (see list below) 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; mobile phone subscribers/100 fixed line subscribers.
  • Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.

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, WiMAX, IPTV, pay-TV, LTE and value-added 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 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. 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.

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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