12 Apr 2012Hong Kong Broadband Overview

Hong Kong has one of the most advanced communication infrastructures in the world. This applies to both fixed and mobile broadband networks. The Local Fixed Telecommunications Network Services (FTNS) market was fully liberalised in January 2003. Following liberalisation, there is no limit on the number of licences that can be issued. In addition, constraints on deadlines for applications, specific requirements on network roll-out or investment and foreign ownership restrictions do not apply. A study released in May 2011 suggests that the pro-competition policy and pro-market approach have been successful in delivering consumer benefits. Hong Kong’s consumers pay one-tenth of the telecommunications charges compared to their counterparts in six other cities under comparison.

As of February 2012, there were 17 local fixed network operators in the country. They included, among others, PCCW/HKT, New World Telecommunications, Wharf T&T, Hutchison Global Communications, Hong Kong Broadband Network, Hong Kong Cable Television and SmarTone Communications.

As a result of open competition in the local FTNS market and government’s withdrawal of its mandatory Type II interconnection policy, over 86 per cent of residential households have a choice of at least two access networks while 76 per cent have at least three choices (March 2011). With the emergence of new technologies, IP telephony services are also widely available in the market.

The incumbent PCCW/HKT has a universal service obligation to provide basic services, including the provision of public switched voice telephone services anywhere in Hong Kong. Local fixed carriers are required to facilitate fixed number portability, which further contributes to competition in the market.

During 2011 the number of fixed lines in the country fell very slightly. Nevertheless at the end of 2011, fixed line penetration was 102 lines per 100 households or 60 per cent per 100 of population, among the highest in the world.