Hong Kong Telecom Market Size

Hong Kong Telecom Market Analysis

The Hong Kong Telecom Market size is estimated at USD 6.43 billion in 2024, and is expected to reach USD 6.96 billion by 2029, growing at a CAGR of 1.60% during the forecast period (2024-2029).

Private concerns offer various telecommunications services in Hong Kong, including mobile, fixed broadband, and local carrier services. The telecom industry in the country is dynamic and fiercely competitive. Hong Kong Broadband Network Limited, Hong Kong Telecommunications (HKT) Limited, China Mobile Hong Kong Company Limited, SmarTone Telecommunications Holdings Limited, and Hutchison Telecommunications Hong Kong Holdings Limited are some key players in the market.

• Hong Kong is considered Asia's leading digitally improved telecommunications center. The digital revolution brought forth by new technology has increased the number of internet users across the country. The demand for mobile internet connections has grown due to the low cost of smartphones and the introduction of 5G-capable mobile devices. The nation's telecom industry is investing all its efforts into developing the 5G market, hoping that as more people make use of the quick download speeds to watch more content, local service revenue will rise (and hence bandwidth).
• Commercial 5G service launches began in April 2020. Local mobile network operators (MNOs) are aggressively deploying their 5G networks. Hong Kong now has 5G coverage for more than 90% of the population. Moreover, the spectrum in the 700 MHz bands, formerly reserved for television broadcast, has been reassigned to promote telecommunications and smart city activities in Hong Kong. The mobile network gradually started its active base stations in the 700 MHz bands to offer 5G services to the public.
• Hong Kong has long been acknowledged as one of the world's top cities for fixed broadband performance. The country's fixed line and mobile service penetration rates are among the highest in the world, and broadband infrastructure is widely used. Even Hong Kong's fixed-line tele density is remarkable at over 50%. However, as people gradually switch to the mobile platform for all their communication needs, it has also begun to see a progressive decrease, following most other telecom markets worldwide.
• According to a DBS analysis, the new housing supply has contributed to steady growth in Hong Kong's residential broadband market. In contrast, the enterprise market is strong, with no impact from COVID-19 on SME exposure. Major telecommunication companies in the country, along with HKBN and HKT, are currently providing a comprehensive range of telecommunications solutions for the home and business markets, such as managed Wi-Fi and broadband services, voice communication, mobile services, OTT entertainment, data center services, integrated cloud services, data connection, and system integration.
• The COVID-19 pandemic had a significant impact on Hong Kong's telecom sector. With the spread of the pandemic, several supply chains in the country's telecom industry were disrupted. Meanwhile, most people in the country had to work from home (WFH) due to the pandemic. Most of Hong Kong's telecom companies quickened their digital transformation with the expectation that the changes would increase their competitiveness and employee resiliency. The extent to which telecom organizations had previously embraced digitization determined how much they had profited from the pandemic.