Mobile Services in Hong Kong to Reach 55% of Total Revenues in 2014, Says Pyramid

Nov 27, 2009 16:51 Nikkei Electronics Asia

In Hong Kong, mobile services will make gains against fixed services in the coming years, reaching 55% of total revenue by 2014, according to Pyramid Research.

"This rise in the market share of mobile services is due to the accelerating adoption of mobile broadband services," says Daniel Yu, an analyst at Pyramid Research. "We expect mobile subscription numbers in Hong Kong to increase from 9.2 million at year-end 2008 to 10.8 million at year-end 2014," he added.

Operators will focus on migrating existing 2G users to 3G+ while promoting data usage to counterbalance the decline in voice ARPS. "Operators' continued push for 3G adoption will drive 3G subscriptions as a proportion of total subscriptions from 32% at year-end 2008 to 86% at year-end 2014," said Yu

Even though mobile voice ARPS will continue to drop due to continuing downward pressure on voice tariffs, healthy growth in data services will ensure that total mobile ARPS will increase at a 1% CAGR, to US$22.86 in 2014. "Operators will also rely heavily on 3G+ networks to offer innovative and revenue-generating value-added services, such as mobile TV, media downloads, gaming and customized applications," Yu explained. "Messaging services will still contribute 55% of total data revenue in 2009, but as 3G services become even more pervasive, infotainment and connectivity will together make up 61% of total data revenue by 2014."

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