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Hong Kong’s fixed communication services revenue to hit $3B by 2028

The fixed communication services revenue in Hong Kong is expected to increase at a compound annual growth rate (CAGR) of 2.0% from $2.7 billion in 2023 to $3.0 billion in 2028, supported by the fixed broadband service segment, according to GlobalData, a leading data and analytics company.

GlobalData’s Hong Kong Fixed Communication Forecast (Q1 2024) reveals that fixed voice services revenue will decline at a CAGR of 7.8% over 2023-2028 due to the continued drop in circuit-switched subscriptions and a decline in fixed voice average revenue per user (ARPU) levels with users continuing to shift from traditional telephony to VoIP and mobile/OTT communication services.

Fixed broadband accounts, on the other hand, will grow at a robust CAGR of 3.2% over the forecast period, led by the rising adoption of high-speed fiber-optic broadband services.

Pradeepthi Kantipudi, Telecom Analyst at GlobalData, says: “Fiber lines accounted for more than 76.1% share of total fixed broadband lines in 2023 and will remain the leading broadband technology through to 2028. This growth in fiber 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 fiber broadband infrastructure in the country.

“PCCW is expected to lead both the fixed voice and fixed broadband segments by subscriber share through to 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 fiber network expansions and its focus on offering promotional tariff plans. For instance, through its subsidiary, HKT, PCCW launched its fiber-optic access networks on Lamma Island under the government’s subsidy scheme in June 2023. As of February 2024, newly build fibre-based networks as a part of specialized projects have connected to 123 villages.” GlobalData

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