26 May, 2023 Fixed communication services revenue to grow at 2.1% CAGR during 2022-2027 in Hong Kong, forecasts GlobalData
Posted in TechnologyThe fixed communication services revenue in Hong Kong is expected to increase at a compound annual growth rate (CAGR) of 2.1% from $3 billion in 2022 to $3.3 billion in 2027, supported by the fixed broadband service segment, forecasts GlobalData, a leading data and analytics company.
GlobalData’s Hong Kong Fixed Communications Forecast (Q1 2023) reveals that fixed voice services revenue will decline at a CAGR of 4.2% over 2022-2027 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 service revenue, on the other hand, will increase at a CAGR of 3.1% during 2022-2027, driven by steady rise in broadband subscriptions, especially fiber broadband.
Sarwat Zeeshan, Telecom Analyst at GlobalData, comments: “Fiber lines accounted for more than 90% share of total fixed broadband lines in 2022 and will remain the leading broadband technology through to 2027. 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 2027. 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 focus on offering promotional tariff plans. For instance, HKT, a subsidiary of PCCW, launched 2500M high-speed FTTH broadband network service in 2022 and is expanding its coverage to outlying islands and remote villages.”