Business Monitor International


Hong Kong Telecommunications Report

Published 12 December 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: M obile market growth has stalled in 2014 and consequently BMI does not believe that there is much scope for organic growth on the Hong Kong mobile market. 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 investment s . Recent spectrum auctions could pave way to higher 4G investment and the expansion on China Mobile into Hong Kong.

Key Data

  • Latest data from the OFCA showed there were 17.168mn mobile subscribers at the end of June 2014, almost unchanged since the beginning of the year. We forecast 18.125mn mobile subscribers by the end of our five-year forecast in 2018, a 242.9% 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 Index

Hong Kong remains in fourth position in BMI's Asia Pacific Telecoms Risk/Reward Index with a telecoms rating score of 62.7, 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 bidding for additional...

Table of Contents

BMI Industry View
7
SWOT
9
Wireline 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
18
Wireline
20
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Hong Kong 2011-2018)
20
Industry Risk Reward Ratings
22
Industry Risk Reward Rating
22
Table: Asia-Pacific Telecoms Risk/Rewards Ratings - Q414
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
38
Table: CSL
38
Table: Hutchison Telecommunications Hong Kong Holdings (3 Hong Kong)
39
Table: China Mobile Hong Kong
41
Table: SmarTone Hong Kong
41
Table: PCCW Mobile
43
Asia Mobile Content
45
Increased Smartphone Adoption A Key Enabler
45
Mobile Games Sector Competition Intensifies
46
Three-Year Outlook For Asian Mobile Games
47
How Mobile Operators Fit In
48
Wireline
49
Table: PCCW Fixed-Line Service Revenue Breakdown (HKDmn)
51
Broadband
51
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
64
Table: Key Players - Hong Kong Telecoms Market
64
Table: Operator Revenues (USDmn)
64
Company Profiles
65
Hutchison Telecommunications Hong Kong Holdings (HTHKH)
65
PCCW
70
CSL
75
SmarTone Telecommunications
79
Regional Overview
83
Demographic Forecast
87
Table: Hong Kong's Population By Age Group, 1990-2020 ('000)
88
Table: Hong Kong's Population By Age Group, 1990-2020 (% of total)
89
Table: Hong Kong's Key Population Ratios, 1990-2020
90
Table: Hong Kong's Rural And Urban Population, 1990-2020
90
Glossary
91
Table: Glossary Of Terms
91
Methodology
93
Industry Forecast Methodology
93
Sources
95
Risk/Reward Ratings Methodology
95
Table: Risk/Reward Ratings Indicators
96
Table: Weighting Of Indicators
97

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