HK operators expand broadband reach as fixed voice earnings dwindle

Move supported by government investments in fibre network infrastructure.

The growth in the fixed broadband segment in Hong Kong is offsetting the decline in fixed voice services revenue.

"Operators are expanding their reach across the nation to deliver high-capacity home and business broadband, especially targeting areas with limited fibre," said GlobalData Telecom Analyst Srikanth Vaidya.

"For instance, HKT, a subsidiary of PCCW, has recently rolled out mmWave-based FWA (fixed wireless access) to provide ultra-high-speed internet in rural communities and on outlying islands."

According to GlobalData, Hong Kong's total fixed communication services revenue is forecast to grow to $2.7b in 2030, representing a 2.1% compound annual growth rate (CAGR) from last year's $2.4b.

It noted: "Fixed voice services revenue will decline at a CAGR of 6.1% over 2025-2030, in line with the decline in fixed voice average revenue per subscriber levels, as users increasingly adopt mobile/OTT-based (over-the-top) communication services, and with operators offering free voice minutes with their fixed bundled plans.

"GlobalData is optimistic about Hong Kong's fixed broadband services outlook and estimates fibre optic lines to hold about 81% of total broadband lines in 2030, supported by the government investments in fibre network infrastructure and operators' FTTH (fibre to the home) service expansions." 
 
The growth in broadband subscriptions is expected to drive fixed broadband service revenue, which is estimated to increase at a CAGR of 3.1% over the forecast period. FWA subscriptions, for instance, are projected to register a 9.2% CAGR.

"Hong Kong fixed communications market is mature and highly competitive, with growth coming less from adding basic lines and more from upgrading users to faster broadband and higher-quality in-home connectivity," added Vaidya, whose camp believes PCCW will lead the fixed broadband segment subscription-wise.