Business Monitor International


Hong Kong Telecommunications Report

Published 21 March 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: Hong Kong has many positive characteristics including comp aratively high purchasing power and a business-friendly environment , and it was the first to launch a commercial long term evolution network in Asia . Mobile subscriber numbers have long passed the 200% penetration mark and , despite the latest data from operators and the regulator show ing continued growth , this rate is slowing down, prompting a downgrade in our forecast. 3G and 4G , however, are the key drivers of growth , outperforming our expectations for the year. Fixed lines continue to post declines at a more rapid pace, although IP lines are a bright spot for the industry.

Key Data

  • Mobile subscriptions continued to grow despite the high penetration rate. We forecast 18.974mn mobile subscribers by the end of our five-year forecast in 2018, a 254.3% penetration rate

  • Full-year data from the regulator for broadband subscriber numbers saw further declines that were unexpected. We believe subscriber numbers will return to growth over the course of our forecast period to 2.57mn broadband subscribers by 2018.

Risk/Reward Ratings

Hong Kong remains in fourth position in BMI's Asia Pacific Telecoms Risk/Reward Ratings with a telecoms rating score of 65.0, slightly lower than the previous quarter.

Key Trends And Developments

In December 2013, Hong Kong Telecom (HKT) is to reacquire mobile network operator CSL in a US$2.245bn deal that would make the incumbent the clear leader in Hong Kong's highly competitive and saturated market and augment its ability to offer comprehensive converged fixed-mobile services to consumers and businesses. HKT's principal shareholder, PCCW Ltd, is expected to hold a market share of around 31% out of a total subscription base of 17.445mn post-acquisition.

In November 2013, the Office of the Communications Authority announced its intention to launch a hybrid administratively assigned/market-based approach to reassign 118.4MHz of paired...

Table of Contents

BMI Industry View
7
SWOT
9
Mobile SWOT
9
Wireline SWOT
11
Political
12
Economic
13
Business Environment
14
Industry Forecast
15
Mobile
15
Table: Telecoms Sector - Mobile - Historical Data And Forecasts
15
ARPU
16
Fixed-Line
18
Table: Telecoms Sector - Fixed Line - Historical Data And Forecasts
18
Broadband
19
Table: Telecoms Sector - Broadband - Historical Data And Forecasts
19
Industry Risk Reward Ratings
21
Asia Risk/Reward Ratings
21
Table: Asia Pacific Telecoms Risk/Reward Ratings - Q214
29
Market Overview
30
Mobile
30
Regional Perspective
30
Table: Hong Kong Mobile Market Regional Comparison, 2012
31
Key Developments
31
Market Growth
32
Market Shares
32
ARPU
33
MVNOs
34
Networks
35
Mobile Content
38
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 Pacific Mobile Content
46
Tablets Are The New TV
47
Table: Percentage Of Long-Form Video Views By Device
50
Infrastructure Is A Key Enabler
50
Wireline
52
Table: PCCW Fixed-Line Service Revenue Breakdown (HKDmn)
54
Broadband
54
Industry Trends And Developments
57
Table: Telecoms Market Developments
57
Regulatory Development
59
Regulatory Overview
59
Table: Hong Kong Regulatory Bodies And Their Responsibilities
59
Spectrum Release Plan (2013-2015)
60
Table: Hong Kong Spectrum Release Plan For 2013-2015
61
Regulatory Developments
62
Competitive Landscape
65
Table: Key Players - Hong Kong Telecoms Market
65
Table: Operator Revenues (US$mn)
65
Company Profiles
66
Hutchison Telecommunications Hong Kong Holdings (HTHKH)
66
PCCW
71
CSL
76
SmarTone Telecommunications
80
Regional Overview
84
The Growth Challenges to Foxconn's Empire
84
Demographic Forecast
88
Demographic Outlook
88
Table: Hong Kong's Population By Age Group, 1990-2020 ('000)
89
Table: Hong Kong's Population By Age Group, 1990-2020 (% of total)
90
Table: Hong Kong's Key Population Ratios, 1990-2020
91
Table: Hong Kong's Rural And Urban Population, 1990-2020
91
Glossary
92
Table: Glossary Of Terms
92
Methodology
94
Industry Forecast Methodology
94
Sources
95
Risk/Reward Ratings Methodology
96
Table: Risk/Reward Ratings Indicators
97
Table: Weighting Of Indicators
98

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 Ratings

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

The ratings 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