Consumer spending on broadband services in Hong Kong is showing steady growth, driven by the rising demand for high-speed internet and operator initiatives in fiber technology.
According to GlobalData, the fixed communication services market in Hong Kong is projected to grow at a compound annual growth rate (CAGR) of 2.5 percent, from $2.7 billion in 2023 to $3.1 billion in 2029. This expansion is primarily fueled by the fixed broadband segment, which is benefiting from the increasing uptake of fiber-optic services.
While fixed voice revenues are expected to decline significantly — at a CAGR of 7.1 percent between 2024 and 2029 — due to the migration from circuit-switched lines to VoIP and mobile/OTT services, the fixed broadband segment will see a CAGR of 3.6 percent over the same period. This reflects a consumer shift toward more data-intensive applications, remote work, and streaming services, all of which demand faster and more reliable connections.
Fiber-optic broadband lines already accounted for 78 percent of total fixed broadband connections in 2024, and this share is expected to remain dominant through 2029. This growth is driven not only by consumer demand but also by sustained operator investment in fiber infrastructure and aggressive promotional pricing strategies.
Operators in Hong Kong are actively offering competitive pricing, bundled services, and promotional offers to attract new subscribers and upgrade existing ones to higher-speed plans. These strategies are expected to further accelerate the adoption of premium broadband services.
Hong Kong’s fixed broadband market is one of the most mature in the world, with nearly 3 million subscriptions as of 2023 and a household penetration rate of around 97 percent, a recent research report from SP Global indicated.
The vast majority of these subscriptions — over 90 percent — are high-speed connections offering 100 Mbps or more, reflecting the widespread availability and adoption of fiber-optic services. Fibre-to-the-home (FTTH) and fibre-to-the-building (FTTB) networks serve more than 90 percent of residential units, positioning the market as a global leader in broadband connectivity.
Main operators
Hong Kong’s fixed broadband market is dominated by a few key operators, with PCCW, HKBN, HGC Global Communications, and China Mobile Hong Kong (CMHK) leading the sector in terms of subscriber share and infrastructure investments.
PCCW / HKT remains the leading fixed broadband provider in Hong Kong, holding the largest subscriber base. The operator’s dominance is supported by continuous investment in network upgrades and adoption of next-generation technologies. Through its subsidiary HKT, the company has introduced 50G passive optical network (PON) technology, enabling ultra-high-speed broadband services with download speeds of up to 50Gbps and improved latency, catering to both residential and enterprise customers. PCCW’s focus on innovation and premium service plans has helped it maintain a competitive edge.
HKBN (Hong Kong Broadband Network) is the second-largest fixed broadband provider. Known for its aggressive pricing strategies and bundled service offerings, HKBN has captured a significant share of the residential and SME market. The company has been expanding its fiber footprint across urban and suburban areas, while also investing in digital solutions and business connectivity services to grow its enterprise segment.
HGC Global Communications serves both consumer and enterprise markets with high-speed broadband and integrated telecom services. While smaller in subscriber share compared to PCCW and HKBN, HGC focuses on strategic fiber expansion and B2B partnerships. The company continues to enhance its service reliability and speed by upgrading its backbone infrastructure and international connectivity.
China Mobile Hong Kong (CMHK) has been growing its presence in the fixed broadband segment through competitive fiber broadband packages. Leveraging its mobile customer base, CMHK offers bundled mobile and home broadband deals, aiming to increase household penetration. The operator is investing in last-mile fiber access and smart home solutions to differentiate its services.
China Mobile is set to acquire a full stake in HKBN. After acquiring a 15.5 percent share in April via TPG, China Mobile formally offered to buy the remainder of HKBN at HK$5.23 per share — an equity valuation of roughly HK$7.8 billion (~US$996 million), Reuters news report said.
Baburajan Kizhakedath