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Forecast: Fixed comm services revenue in Hong Kong to grow at 2% CAGR

May 28, 2024

The fixed communication services revenue in Hong Kong is forecast to increase at a compound annual growth rate (CAGR) of 2 per cent from $2.7 billion (€2.4bn) in 2023 to $3 billion in 2028, supported by the fixed broadband service segment, according to GlobalData, the data and analytics company.

GlobalData’s Hong Kong Fixed Communication Forecast (Q1 2024) reveals that fixed voice services revenue will decline at a CAGR of 7.8 per cent over 2023-2028 due to the continued drop in circuit-switched subscriptions and a decline in fixed voice average revenue per user (ARPU) levels with users continuing to shift from traditional telephony to VoIP and mobile/OTT communication services.

Fixed broadband accounts, on the other hand, will grow at a robust CAGR of 3.2 per cent over the forecast period, led by the rising adoption of high-speed fibre-optic broadband services.

Pradeepthi Kantipudi, Telecom Analyst at GlobalData, commented: “Fibre lines accounted for more than 76.1 per cent share of total fixed broadband lines in 2023 and will remain the leading broadband technology through to 2028. This growth in fibre lines will be driven by the growing demand for high-speed broadband connectivity and efforts by the government and telecom operators to upgrade and expand fibre broadband infrastructure in the country.

“PCCW is expected to lead both the fixed voice and fixed broadband segments by subscriber share through to 2028. The telco’s leading position in the fixed broadband segment is supported by the growing share in the FTTH/B service segment on the back of fibre network expansions and its focus on offering promotional tariff plans. For instance, through its subsidiary, HKT, PCCW launched its fibre-optic access networks on Lamma Island under the government’s subsidy scheme in June 2023. As of February 2024, newly build fibre-based networks as a part of specialised projects have connected to 123 villages.”

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