HK Telecom, Pay-TV revenue to see 1.8% CAGR through 2029

This will be led by the growth in mobile data and fixed broadband service segments.

The total telecom and pay-TV services revenue in Hong Kong is expected to rise at a compound annual growth rate (CAGR) of 1.8% over the forecast period 2024 to 2029, according to GlobalData.

This is due to the growth in mobile data and fixed broadband service segments.

Mobile voice service revenue is expected to decline at a CAGR of 2.1% from 2024 to 2029, driven by consumer shift towards OTT communication platforms and the subsequent decline in mobile voice ARPU.

Mobile data revenue, in contrast, will see an increase at a CAGR of 3.4% over the same period due to the growth in mobile internet subscriptions and higher mobile data average revenue per user (ARPU), supported by the expanding adoption of 5G services.

“4G services accounted for the largest share of mobile services market, in terms of subscriptions, in 2024,” said Sarwat Zeeshan, Telecom Analyst at GlobalData. “However, its share will decline over the forecast period, due to the continued migration of subscribers to 5G services.”

The rise in 5G subscriptions will be driven by increasing consumer demand for fast wireless network connectivity, expanded 5G service availability due to operators’ network upgrades, and telcos’ promotional 5G plans and devices with larger data capacities for applications like video streaming and social media.

Revenue from fixed voice service in the fixed communication segment is expected to decline during the forecast period due to a decrease in circuit-switched subscriptions and declining fixed voice ARPU.

Fixed broadband service revenue, on the other hand, will grow at a CAGR of 3.3% over the 2024 to 2029 period, driven by the steady growth in fibre broadband subscriptions.

“Out of the planned 235 villages across nine districts in New Territories and on outlying islands, FNOs completed the fibre-optic network rollout in 176 villages as of November 2024 and plan to expand the network to the remaining villages by 2026,” Zeeshan said.

Pay-TV services revenue in the country will decline over the forecast period due to the growing user preference for OTT-based video services and declining aggregate pay-TV ARPU.