The fixed communication services revenue in Hong Kong is expected to increase at a compound annual growth rate (CAGR) of 2.5% from $2.7 billion in 2023 to $3.1 billion in 2029, supported by the fixed broadband service segment, reveals GlobalData, a leading data and analytics company.

GlobalData’s Hong Kong Fixed Communication Forecast (Q1 2025) reveals that fixed voice services revenue will decline at a CAGR of 7.1% over 2024-2029 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 CAGR of 3.6% over the forecast period, led by the rising adoption of high-speed fiber-optic broadband services.

Srikanth Vaidya, Telecom Analyst at GlobalData, says: “Fiber lines accounted for about 78% of total fixed broadband lines in 2024 and will remain the leading broadband technology through to 2029. This growth will be driven by the rising demand for higher-speed broadband connectivity in the country and operator investments in the fiber network infrastructure. This growth will also be driven by the promotional offers and discounted fiber service plans offered by operators.”

PCCW is expected to lead both the fixed voice and fixed broadband segments by subscriber share through to 2029. The telco’s leading position in the fixed broadband segment is supported by its efforts in adopting new technologies to enhance its existing fiber networks.

For instance, HKT, a subsidiary of PCCW, announced the adoption of 50G passive optical network (PON) technology, enabling ultra-high-speed, low-latency connectivity with download speeds of up to 50Gbps and improved multi-device support via WiFi 7 for both residential and commercial customers.

Vaidya concludes: “Hong Kong’s fixed communications market is undergoing a steady transformation driven by the accelerating shift toward high-speed fiber broadband. Operators are not only expanding their fiber footprint but also adopting next-gen technologies, which will play a pivotal role in meeting future digital demands and sustaining long-term revenue growth.”