The fixed communication services market revenue in Hong Kong will decline at a compound annual growth rate (CAGR) of 1.7% from US$1.9bn in 2020 to US$1.7bn in 2025, due to a steady decline in revenues from fixed voice and fixed broadband services, according to GlobalData, a leading data and analytics company.

GlobalData’s Hong Kong Telecom Operators Country Intelligence Report reveals that fixed broadband revenues will increase by 3.4% year-on-year in 2020, supported by an increase in residential broadband usage among consumers to support their work from home and web-based entertainment needs amid the COVID-19 pandemic.

However, fixed broadband revenues are expected to decline thereafter at a CAGR of 0.9% over 2020-2025, in line with the steady drop in broadband average revenue per user (ARPU) levels. Total fixed voice revenue in Hong Kong will also decline at a CAGR of 2.4% during 2020-2025, due to falling circuit-switched subscriptions and declining voice ARPU.

Deepa Dhingra, Telecom Analyst at GlobalData, says: “Fiber will remain the leading technology to deliver fixed broadband services in Hong Kong during 2020-2025. Fiber lines will constitute 86.0% of the total fixed broadband lines in 2020, with its share growing to 97.9% by 2025-end, as the government offers subsides to operators to accelerate the deployment of fiber-network infrastructure.

“PCCW will lead the fixed voice and broadband segments in 2020. PCCW has been focusing on the expansion of fiber-optic services to residential customers to retain its leading position in the fixed broadband segment. It will also remain the leading fixed voice service provider throughout the forecast period primarily due to its strong foothold in both circuit-switched and VoIP services segments.”