Fiber broadband lines are set to continue to proliferate in Hong Kong and will remain the leading technology to deliver fixed broadband services in the country during 2020-2025, according to GlobalData.
An analysis of GlobalData’s Hong Kong Fixed Communication Model reveals that fiber-optic’s share in the total fixed broadband lines will increase from 83.3% in 2020 to 95.3% in 2025. At the same time, cable and DSL’s share in the overall fixed broadband lines will decline to reach 0.7% and 4.0%, respectively.
Fiber broadband market in the country will benefit over the forecast period from six new fiber projects awarded by the country’s telecom regulator i.e., the Office of the Communications Authority (OFCA) in June 2020. The subsidy scheme aims to provide support for the expansion of fiber-optic infrastructure to 235 villages across nine districts in the New Territories and outlying islands.
Deepa Dhingra, Telecom Analyst at GlobalData, says: “OFCA has been working with the service providers to accelerate the fiber network deployment. PCCW and China Mobile Hong Kong obtained three contracts each from the regulator to roll out fiber network across the country.
“Despite improving coverage of fiber-optic infrastructure, the overall fixed broadband service revenues are expected to decline over the forecast period due to falling broadband average revenue per subscriber (ARPS). This decline in ARPS can be attributed to the promotional discount plans offered by operators to drive service adoption and survive competition.”