Hong Kong telecom operators are shifting their focus from subscriber acquisition to subscriber retention, as the market is expected to grow at a CAGR of 2.8% to reach $5.5 bn in 2015, according to a new report from Pyramid Research.
The research house said that the Hong Kong telecom market generated $4.8bn in 2010, recovering to 2008 levels after registering a drop in revenue to $4.6bn in 2009.
In 2010, solid growth in mobile data usage and a recovery in mobile voice revenue due to increased usage levels have supported the growth of telecom service revenues.
The report revealed that the mobile data growth will be driven by the efforts of operators, such as 3, PCCW, and SmarTone, which are offering mobile data cards, netbook data card bundles, and smartphones with unlimited data access plans.
In addition, Pay-TV growth will benefit from operators’ bundled offerings for both new and existing customers, and pricing plans and FTTx expansion.
Pyramid senior analyst Daniel Yu said data and content services will be the main growth drivers, with mobile data services rising at a 10% CAGR between 2010-2015 on the strength of increased adoption of data-centric devices, such as 3G data cards and smartphones.
"Hong Kong’s broadband and mobile penetration rates are among the highest in Asia, respectively at 94% of households and 144% of the population at year-end 2010," Yu said.
The research firm said operators must give special attention to creating innovative content and value-added services because broadband connectivity is reaching saturation levels.
