Hong Kong Communication Profile 2012

Broadband - Overview & Statistics
The extensive roll out of sophisticated telecommunications infrastructure has allowed Hong Kong to move quickly in providing over 75% of all households with access to broadband connectivity. This has been accompanied by rapid growth in the Internet market. Broadband Internet subscriptions well and truly surpassed dial-up subscriptions by end-2005. There were in excess of 4.8 million Internet users in the territory, gaining access using either dial-up or broadband, by end-2008. The number of broadband subscribers represented about 67% of the total Internet subscriber base, supported by a healthy number of ISPs providing a competitive environment with attractive choice and pricing for subscribers. The extensive DSL and cable coverage coupled with a large fibre optic footprint has driven the market for triple play services and IPTV.

Key Statistics, Telecom Market and Regulatory Overviews
Hong Kong takes pride in the way it has built one of the most sophisticated telecoms markets in the world. It has one of the world's highest penetrations in mobiles, Internet and telephones generally. Its fixed-line teledensity of 53% is among the highest in Asia. Mobile penetration has rapidly moved to a surprising 150% plus. Hong Kong's regulator, the Office of the Telecommunications Authority, has played a major role in developing the telecom sector.

Major Telecom Players
Hong Kong has five mobile operators in a crowded market, which has continued to remain competitive through preparedness among the operators to restructure and be innovative. The number of operators has dropped from eight to five through a series of acquisitions. Competition was also given a real boost with the introduction of mobile number portability service in 1999. The vibrant market has also been well supported by the operators' keenness to value add to their service offerings through fixed-line and mobile services. This has resulted in an increasing number of operators offering triple-play and even quadruple play services in a bid to drive up ARPU.

Mobile Communications - Market Overview & Statistics
Growth in Hong Kong's mobile phone market has been continuing at a pace. By June 2008 penetration was at 122%. This penetration level puts Hong Kong in third place behind Singapore and Macau in the Asian mobile market (all ahead of previous leader, Taiwan). Growth in the mobile sector started back in 1999 when the market was boosted by the introduction of number portability. With a population of almost 7 million, the market is effectively saturated but has continued to remain competitive through preparedness among the operators to restructure and be innovative.

Telecommunications Infrastructure
Consistent with its status as one of the leading telecommunications economies in the world, Hong Kong has built itself world-class telecom infrastructure. Digitalised since 1995, the Special Administrative Region has been wired extensively with optical fibre cables, with the vast majority of households covered by this extensive broadband network. The rollout has been characterised by the utilisation of practically every type of technology. Hong Kong is naturally a key regional telecommunications hub and as such is the landing point for a significant number of strategically important submarine cables. Television is a substantial market in Hong Kong, with an estimated customer base of almost 2.2 million households (99%). There are over 200 domestic, regional and international TV channels broadcasting in a range of languages, including free-to-air commercial channels, pay TV channels and a variety of FTA satellite channels.