Thursday, April 18, 2024

5G Only Positive Trend in Stagnant Hong Kong Mobile Services Market

The mobile services market in Hong Kong faces stagnation, with limited overall revenue growth projected despite the anticipated surge in 5G service adoption. While 5G represents a positive trend, the industry is expected to witness only marginal expansion, reaching $2.8 billion in 2027 from $2.7 billion in 2022, forecasts GlobalData, a leading data and analytics company.

GlobalData’s Hongkong Mobile Broadband Forecast Model predicts a growth in mobile data service revenue in Hong Kong. On the other hand, mobile voice and messaging services revenue is expected to decline, indicating a shifting trend towards data-centric communication and consumption patterns.

Harendra Sharma, Telecom Analyst at GlobalData, says: “The growth in the data service revenue can be primarily attributed to the projected rise in 5G subscriptions, which is largely due to the efforts of telecom operators to promote and expand their 5G services throughout the country.”

Though 4G services currently account for majority (70 percent) of the total mobile subscriptions in the country, 5G subscriptions are projected to grow at a compound annual growth rate (CAGR) of 22 percent between 2022 and 2027 and will go on to account for 70 percent of total subscriptions in 2027.

Sharma concludes: “The average monthly mobile data usage is expected to grow significantly from 5.4GB in 2022 to 19.6GB in 2027. This surge is largely due to the increasing consumption of online video and social media content on smartphones, which is supported by the operators’ data-centric plans and increasing availability and adoption of 5G services.

“While PCCW will lead the post-paid segment, by subscriptions, China Mobile will top the pre-paid segment, by subscriber share through the forecast period. Both players will stand to gain from their continued investments in 5G infrastructure developments. PCCW and China Mobile have achieved nationwide 5G coverage exceeding 90 percent to date, which serves as a significant advantage.”

Visit https://www.globaldata.com

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