Hong Kong’s mobile services market is set to experience revenue growth at a compound annual growth rate (CAGR) of 1.2 percent, rising from $2.7 billion in 2024 to $2.9 billion in 2029, according to GlobalData. This growth will be largely fueled by increasing consumer spending on mobile data services, as demand for high-speed connectivity and data-intensive applications continues to rise.
Consumer preferences are rapidly shifting toward digital and OTT platforms, resulting in a 2.7 percent CAGR decline in mobile voice service revenue during the forecast period. This is driven by falling voice ARPU and a growing reliance on internet-based communication tools such as messaging apps and VoIP services.
Conversely, mobile data services are expected to register a 3 percent CAGR from 2024 to 2029, backed by higher mobile internet penetration and the migration of users to premium 5G plans. Average monthly data usage is projected to surge from 8.8GB in 2024 to 28.7GB in 2029, reflecting strong consumer appetite for video streaming and social media content, which are supported by data-centric telco offerings.
The transition from 4G to 5G is a defining trend, as consumers increasingly demand faster speeds and more reliable connections. While 4G accounted for the majority of mobile subscriptions in 2024, its share is expected to decline as 5G adoption accelerates—driven by aggressive network rollouts, competitive pricing, and bundling of high-data plans with smart devices.
Regulatory initiatives, including the OFCA’s spectrum auction in late 2024, will enhance 5G infrastructure and pave the way for future 6G developments. These developments are expected to support consumer spending on next-generation mobile experiences and advanced digital services.
major operators
The Hong Kong telecom market is served by several major operators, with China Mobile Hong Kong (CMHK), CSL Mobile (under HKT/PCCW), 3 Hong Kong (Hutchison), SmarTone, and Hong Kong Broadband Network (HKBN) being the primary players.
China Mobile Hong Kong is the market leader with a subscriber base of approximately 8 million. The operator has made substantial investments in nationwide 5G rollout, including spectrum in the 3.5 GHz and 4.9 GHz bands. CMHK is also expanding into broadband services and is currently in negotiations to acquire HKBN in a deal worth HK$7.8 billion (US$996 million), signaling its intention to strengthen fixed-mobile convergence.
CSL Mobile, part of HKT and controlled by PCCW, along with sister brand Sun Mobile, has an estimated user base of around 5 million. The company has been focused on premium enterprise services, launching Asia’s first 800 Gbps private WAN and introducing Operator Connect for Microsoft Teams to serve corporate customers. Its investment priorities lie in enhancing 5G for enterprise use and maintaining strong service reliability.
3 Hong Kong, operated by CK Hutchison, reported a subscriber base of about 4.6 million in early 2025. The company is seeing growth in prepaid and roaming services and boasts a 5G penetration rate of 54 percent. It has recently scaled back capital expenditure to around HK$434 million (US$55.6 million) for FY 2024 following earlier investments in 5G rollout.
SmarTone has grown its mobile user base to about 2.87 million, with approximately 40 percent of those on 5G. The operator has prioritized network performance through infrastructure densification and spectrum refarming. It leads the market in postpaid average revenue per user (ARPU) at HK$222. Its investments also target fiber broadband and enterprise ICT services, which are contributing to growth in both revenue and EBITDA.
HKBN, while originally focused on broadband, has entered the mobile space and maintains about 864,000 residential broadband subscribers and 58,000 enterprise customers. The company has invested around HK$11 billion recently and has been the subject of a takeover bid by CMHK. It is focusing on increasing operating efficiency and expanding its bundled service offerings.
As of early 2025, Hong Kong has over 27 million mobile subscriptions, representing a penetration rate of 357 percent. The number of 5G users stands at approximately 7.6 million, about 30 percent of the total. Telecom sector capital expenditure was around HK$5.8 billion in 2023, and market revenues are expected to grow at a CAGR of around 2 percent through 2029, driven mainly by mobile data and broadband services. Overall, the market is transitioning from aggressive 5G infrastructure spending to strategies focused on subscriber monetization, service convergence, and operational efficiency.
China Mobile Hong Kong is projected to maintain its leadership through 2029, leveraging its investments in 5G expansion and innovation. As data usage becomes central to consumer behavior, telcos will need to invest in differentiated 5G offerings and network modernization to retain market share and tap into new revenue opportunities, GlobalData said.
In summary, consumer spending in Hong Kong’s mobile services market is gradually shifting from traditional voice services to data-first usage patterns, with 5G acting as the growth catalyst. The market’s evolution is underpinned by rising digital consumption, regulatory support for spectrum availability, and operator-led innovation.
Baburajan Kizhakedath
