Fixed comm services revenue to grow 2% in 5 years

This is thanks to the fixed broadband service segment. 

GlobalData is projecting revenue of Hong Kong’s fixed communication services to record a compound annual growth rate (CAGR) of 2% from $2.7b in 2023 to $3b in 2028, fueled by the fixed broadband service segment.

The data analytics company also said in its Hong Kong Fixed Communication Forecast (Q1 2024) that fixed voice services revenue will decline at a CAGR of 7.8% over 2023-2028. This will be due to the continued drop in circuit-switched subscriptions and a decline in fixed voice average revenue per user (ARPU) levels as users shift from traditional telephony to VoIP and mobile/OTT communication services.

Fixed broadband accounts, on the other hand, will log a CAGR of 3.2% over the forecast period. GlobalData associated this to the rising adoption of high-speed fibre-optic broadband services.

According to Pradeepthi Kantipudi, telecom analyst at GlobalData, fibre lines accounted for more than 76.1% share of total fixed broadband lines in 2023. It will remain the leading broadband technology through 2028, the expert noted. 

The expansion 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, GlobalData said.

Kantipudi sees PCCW to lead both the fixed voice and fixed broadband segments by subscriber share through 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,” the analyst said. 

“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 built fibre-based networks as a part of specialised projects have connected to 123 villages,” he added.