The fixed communication services revenue in Hong Kong is expected to increase at a compound annual growth rate (CAGR) of 1.6% from $3 billion in 2022 to $3.3 billion in 2027, mainly driven by the strong growth in the fixed broadband segment, forecasts GlobalData, a leading data and analytics company.
GlobalData’s Hong Kong Fixed Communications Forecast (Q2 2022) reveals that fixed voice services revenue will decline at a CAGR of 5.2% over 2022-2027, owing to the drop in circuit switched subscriptions and a decline in fixed voice average revenue per subscriber (ARPU) levels as users shift to VoIP and adoption of OTT-Voice calling services.
Fixed broadband services revenue, on the other hand, will increase at a CAGR of 2.7% during 2022-2027, driven by the solid growth in broadband subscriptions, especially cable and fiber broadband.
Harendra Sharma, Telecom Analyst at GlobalData, comments: “‘Cable’ and ‘Fiber’ broadband are the fixed broadband service categories that will see an increase in subscriptions, accounting for 7% and 90% of the total broadband lines in 2027, respectively. The growth in fiber will be driven by the strong demand for high-speed broadband connectivity and the expansion of fixed broadband networks in the country, on the back of the government and telcos’ efforts to expand fiber broadband infrastructure.
“PCCW will lead both fixed voice and fixed broadband segments by subscriber share through 2027. The telco’s leading position in the fixed broadband segment is supported by its strong presence in both the DSL and FTTH/B segments. For instance, the operator offers HKT Super Bundle plan and Stay Home Super Combo plan at a rebate of HK$200 (US$25.7) upon prepayment of HK$2000 (US$257).”
