Chapter 5 - Overview of Major Developments in the Communications Market

Broadcasting

5.1 An Overview of the Developments in the Broadcasting Market

5.1.1 Number of Licensees and Channels
Television Programme Services

As at March 2019, the total number of free TV, pay TV and non-domestic TV licensees was 19. They provided 622 television channels1, of which 448 were receivable in Hong Kong, representing a slight decrease of 3% since March 2018. An overview of the channels provided by the television programme service licensees is shown in Figure 1.

As at March 2019, there were three free TV licensees, viz. Fantastic Television Limited (Fantastic TV), HK Television Entertainment Company Limited (HKTVE) and Television Broadcasts Limited (TVB). They provided a total of 12 channels, comprising nine digital channels all broadcast in high definition television (HDTV) format and three analogue channels. The above channels include three channels which were broadcast in both digital and analogue formats, viz. “Jade” and “Pearl” (by TVB) as well as “Hong Kong Open TV” (by Fantastic TV). The remaining six digital channels were “ViuTV” and “ViuTVsix” (by HKTVE); “J2”, “TVB News Channel” and “TVB Finance & Information Channel” (by TVB) and “Hong Kong International Business Channel” (by Fantastic TV). Radio Television Hong Kong (RTHK), as the public service broadcaster in Hong Kong, provided three channels and two of them were simulcast in both analogue and digital formats.

As at March 2019, there were two pay TV licensees, viz. Hong Kong Cable Television Limited (HKCTV) and PCCW Media Limited (PCCW Media), providing a total of 389 pay television channels and offering a diverse range of local and overseas productions. Among those channels, over 130 were HDTV channels.

As at March 2019, there were 14 non-domestic TV licensees providing a total of 221 television channels, representing an increase of 18% since March 2018. Hong Kong viewers could receive 47 of those television channels.

During the period under review, there were 22 other licensable TV licensees providing television programme services in hotels in Hong Kong. Together they provided services to more than 70 hotels in Hong Kong.

Figure 1: Television Channels Provided by Television Programme Service Licensees in Hong Kong (as at 31 March 2019)
DateFree TV*Pay TVNon-domestic TV
Number of Channels
Aug 2010 15 325 214
Aug 2011 15 355 222
Mar 2012 15 358 234
Mar 2013 15 372 260
Mar 2014 15 400 270
Mar 2015 15 395 265
Mar 2016 16 401 276
Mar 2017 9 403 186
Mar 2018 11 393 188
Mar 2019 12 389 221

Sources: Licensees
* The simulcast channels of Asia Television Limited (2010-2016), TVB (2010-2019) and Fantastic TV (2018-2019) are counted for both the analogue and digital platforms.

In addition to satellite television channels provided by non-domestic TV licensees, Hong Kong viewers can receive free unencrypted satellite television programme channels uplinked from outside Hong Kong. As at March 2019, there were more than 400 free-to-air satellite television channels available for reception via the Satellite Master Antenna Television systems in Hong Kong. The list of channels currently available can be downloaded at http://www.ofca.gov.hk/filemanager/ofca/en/content_295/st_smatv.pdf.

Sound Broadcasting Services

During the period under review, there were two sound broadcasting licensees, namely, Hong Kong Commercial Broadcasting Company Limited (CRHK) and Metro Broadcast Corporation Limited (Metro). RTHK as the public service broadcaster also provided sound broadcasting service.

As at March 2019, there were 13 radio channels (three by CRHK, three by Metro and seven by RTHK). All channels provided by the commercial licensees and RTHK were broadcast round-the-clock.

5.1.2 Transmission Modes
Television

The regulatory framework for television programme services in Hong Kong as enshrined in the BO is technology-neutral2. Licensees are free to choose their transmission arrangements for delivery of television services. Broadcasters may build their own transmission networks to deliver their services and, in such cases, they need to apply for a carrier licence from the Authority to cover the transmission network. Alternatively, they may engage any of the existing carrier licensees to provide the transmission service. Licensees may also provide their television programme services via multiple transmission platforms so as to maximise the coverage.

The transmission modes employed by television programme service licensees are set out in Figure 2.

Figure 2: Transmission Modes Employed by Television Programme Service Licensees
Licensee Transmission Mode Network Coverage (as at March 2019)
Free TV
TVB Terrestrial UHF3, including
(a) Analogue PAL-I format; and
(b) Digital National Standard format 		99% of population
HKTVE Terrestrial UHF and Fixed broadband network 99% of population
Fantastic TV HFC4 and MMDS5 Around 95% of total households
Pay TV
HKCTV HFC, MMDS and satellite (Digital) Around 96% of total households
PCCW Media PON and DSL6 Broadband network (Digital) Around 97% of total households
Non-domestic TV
All the 14 licensees Satellite (Digital) 33% of total households (865 425 households)7
Penetration of Different Broadcasting Services

The penetration rate of free TV services stood at about 97% of the total households as at end of March 20198. As regards digital terrestrial television (DTT) services, the take-up rate was about 88% of all the households in October 20179.

The penetration of licensed pay TV services was about 83%10 of the total households as at end of March 2019. The total number of subscribers to licensed pay TV services stood at about 2.1 million in March 201911. The changes in total number of subscribers from 2010 to 2019 are shown in Figure 3.

Figure 3: Subscribers to Licensed Pay TV Services in Hong Kong
DateNo. of Aggregate Subscribers
Aug 2010 2 310 000
Aug 2011 2 390 000
Mar 2012 2 440 000
Mar 2013 2 431 000
Mar 2014 2 448 000
Mar 2015 2 421 000
Mar 2016 2 338 000
Mar 2017 2 151 000
Mar 2018 2 151 000
Mar 2019 2 144 000

Sources: Licensees

Sound Broadcasting

During the period under review, the radio broadcasters provided their services in FM and AM modes. Seven FM programme channels were provided through seven hilltop sites, supplemented by two low-power FM gap-fillers. In addition, six AM programme channels were broadcast from two island and hilltop sites, supplemented by six low-power AM/FM gap-fillers. The services practically covered the whole area of Hong Kong.

5.1.3 Broadcasting Revenues and Investment

Licensed broadcasting services contributed an estimated $8.35 billion12 to the Hong Kong economy, which represented about 0.3% of the gross domestic product in 2018. There are two main sources of revenues for the provision of broadcasting services, viz. advertising and subscription. The incomes of free TV licensees and sound broadcasting licensees mainly come from advertising sales13. Pay TV licensees, on the other hand, derive their incomes mainly from subscription fees with advertising sales being a secondary income source.

Advertising Revenue

According to the report of admanGo, the advertising expenditures on television and radio accounted for 30% (about $7.86 billion) and 4% (about $1.05 billion) respectively of the accumulated $26.2 billion advertising expenditures in the media in 201814.

In 2018, the actual advertising revenues of HKTVE and TVB were around $204 million and $2.44 billion respectively. The actual advertising revenues of other licensees were not publicly available.

Subscription Revenue

According to the annual report of PCCW Limited (PCCW), the holding company of PCCW Media, the turnover of its pay TV service and related services provided in Hong Kong under the “nowTV” brand was $2.86 billion in 2018, representing an increase of 5% over the figure in 2017.

The subscription revenue of HKCTV is not publicly available.

Investment in Broadcasting Industry

Key investment projects in the television industry in recent years include digitisation of the terrestrial broadcasting network, HDTV content and production technology, interactive television services, and regular network maintenance and upgrades that are required to maintain or expand the ever-advancing scope of services. In addition, with the increasingly competitive television industry, the exclusive rights to broadcast premium contents such as sports events have been a major attraction to viewers.

Fantastic TV, HKTVE and TVB have respectively committed to investing a total of $1.2 billion for the six-year period from 2016 to 2022, $1.5 billion for the six-year period from 2015 to 2021 and $6.3 billion for the six-year period from 2016 to 2021 for the provision of free TV services. Investment commitments of Fantastic TV, HKTVE and TVB comprise capital expenditures and programming expenditures. As at March 2019, Fantastic TV, HKTVE and TVB provided 336, 289 and 815 hours of HDTV programmes per week respectively. Fantastic TV and TVB have also committed to increasing the amount of independent local productions in their programming progressively15.

As regards the pay TV market, i-CABLE Communications Limited, the parent company of HKCTV, reported in its 2018 Annual Report that the capital expenditure of the group for the year decreased from $208 million in 2017 to $179 million in 2018. Its major items of investment included property, plant and equipment. According to the 2018 Annual Report of PCCW, the parent company of PCCW Media, the capital expenditure for the year on its media business was $360 million, representing an increase of 53% over the figure in the previous year. Its major items of investment included the relocation and upgrading of production studio facilities.

CRHK and Metro have committed to investing a total of $909 million and $685 million respectively for the six-year period from 2016 to 2022 for the provision of sound broadcasting services. The investment commitments of CRHK and Metro cover programming improvement and upgrading of infrastructure and facilities and other developments brought by technological advancement to further enhance their service quality.

5.1.4 Programme Variety and Positive Programme Requirements
(a) Programme Variety and Diversity
Number of Broadcast Hours and Hours of Station Productions

As at March 2019, the licensees broadcast about 65 727 hours of television programmes a week. Among them, the three analogue channels of Fantastic TV and TVB provided a total of 503 broadcast hours per week. The nine digital channels of Fantastic TV, HKTVE and TVB provided a total of 1 463 broadcast hours per week, while the 389 channels of the two pay TV licensees provided a total of 55 865 broadcast hours per week. As a public service broadcaster, RTHK provided 302 hours on its two analogue channels and 379 hours on its three digital channels per week. As at March 2019, the 47 channels of non-domestic TV licensees receivable in Hong Kong provided a total of 7 896 broadcast hours per week.

The weekly number of broadcast hours for CRHK, Metro and RTHK as at March 2019 was 2 184.

For the period under review, there were a total of 40 805 hours of station productions broadcast on Fantastic TV, HKTVE and TVB, of which 9 960 hours were on three analogue channels and 30 845 hours on nine digital channels. Of the 389 channels provided by pay TV licensees, 86 channels (22.1%) were produced by the licensees themselves.

Free TV Services

Chinese and English Channels

During the period under review, drama series and news/weather reports were the dominating programme genres during prime time on the Chinese channels (viz. “Hong Kong Open TV”, “Jade” and “ViuTV”). Drama series on “Jade” were mostly in-house productions; while “Hong Kong Open TV”, “Jade” and “ViuTV” broadcast Mainland, Korean and Japanese drama series. In addition, magazine/talk shows, travelogues, music programmes/variety shows and feature films, etc. were also broadcast during prime time on the Chinese channels. The three channels provided by RTHK presented a variety of programmes to serve a broad spectrum of audiences and cater to the needs of minority interest groups.

Figure 4: Weekly Hours of Different Types of Programmes Broadcast on Hong Kong Open TV, Jade and ViuTV (as at March 2019)
Programme TypesHoursPercentage (%)
Dramas 133.3 26.6
News/Weather Reports 82.1 16.4
Business/Financial Programmes 59.7 11.9
Children’s Programmes/Animation 45.8 9.1
Magazine/Talk Shows 41.6 8.3
Travelogues 20.7 4.1
Music Programmes/Variety Shows 19.8 3.9
Cooking Programmes 10.6 2.1
Feature Films 9.3 1.8
*Others 79.1 15.8
Weekly Total 502 100

Source: Licensees
* Other programmes include hobbies/leisure programmes, health/medical programmes and documentaries etc.

The English channels (viz. “Hong Kong International Business Channel”, “Pearl” and “ViuTVsix”) broadcast a wide range of programmes, including business/financial programmes, news/weather reports, children’s programmes/animation, imported popular drama series, sports programmes, music programmes/variety shows, documentaries, feature films, education/enrichment programmes and current affairs programmes.

Figure 5: Weekly Hours of Different Types of Programmes Broadcast on Hong Kong International Business Channel, Pearl and ViuTVsix (as at March 2019)
Programme TypesHoursPercentage (%)
Business/Financial Programmes 166.5 36.6
Children’s Programmes/Animation 62.1 13.6
News/Weather Reports 48.3 10.6
Dramas 32.7 7.2
Music Programmes/Variety Shows 32.0 7.0
Documentaries 26.9 5.9
Education/Enrichment Programmes 11.7 2.6
Feature Films 10.6 2.3
Current Affairs Programmes 9.7 2.1
*Others 55.0 12.1
Weekly Total 455.5 100

Sources: Licensees
* Other programmes include sports programmes, travelogues and health/medical programmes etc.

Thematic Channels

During the period under review, TVB provided acquired dramas, documentaries, variety shows, news, finance information programmes, etc. via “J2”, “TVB News Channel” and “TVB Finance & Information Channel”.

Pay TV Services

During the period under review, a wide variety of channels were offered on pay TV services, including entertainment/infotainment channels (28.8%), sports channels (21.1%), news/information channels (14.4%), documentary/learning channels (10%), and movie channels (9.3%).

Figure 6: Nature of Pay TV Channels (as at March 2019)
Nature of ChannelsQuantityPercentage (%)
Entertainment/Infotainment 112 28.8
Sports 82 21.1
News/Information 56 14.4
Documentary/Learning 39 10.0
Movies 36 9.3
Children 27 6.9
Adult 17 4.4
Music 6 1.5
Others 14 3.6
Total channels 389 100

Sources: Licensees

As at March 2019, HKCTV offered 145 channels (including 45 HDTV channels). PCCW Media’s “nowTV” service offered 178 channels (including 89 HDTV channels) and 66 video-on-demand services.

Sound Broadcasting

As at March 2019, CRHK operated two FM Cantonese language services, viz. “CR1” and “CR2”, and one AM English language service, “AM 864”. “CR1” mainly provided news, current affairs, financial and personal view programmes. “CR2” was mainly an entertainment channel featuring pop culture and music targeting young listeners. “AM864” was primarily a music channel.

Metro operated two FM Cantonese language services, viz. “Metro Finance” and “Metro Info”, and one AM English language service, viz. “Metro Plus”. “Metro Finance” provided real-time, market-moving news and information about financial markets around the world. “Metro Info” provided music and entertainment programmes as well as programmes on lifestyle, health, market news and other information of interest to the public. “Metro Plus” was a music channel which also provided programmes for ethnic groups including the Filipino, Indian and Thai communities in Hong Kong.

RTHK operated seven radio channels, providing Cantonese, English and Putonghua services. It offered a variety of thematic channels ranging from information to general entertainment and culture.

(b) Positive Programme Requirements
Free TV Services

During the period under review, free TV licensees (viz. Fantastic TV, HKTVE and TVB) were required to broadcast at least 27.5 hours of positive programmes16 per week. They all met the requirements17.

The reports submitted by the licensees to the Authority on six types of positive programmes, viz. current affairs programmes, documentaries, children’s programmes, programmes for young persons, programmes for senior citizens and arts and culture programmes, are available at http://www.ofca.gov.hk/en/pub_report/compliance_reports/index.html.

Figure 7: Broadcast of Positive Programmes on the Chinese Channels of Fantastic TV, HKTVE and TVB (as at March 2019)
Programme TypesHong Kong Open TVViuTVJade
Yearly Total (Hours)
Arts and culture programmes 106 102 62
Children’s programmes 417 1 029 934
Current affairs programmes 106 52 122
Documentaries 204 52 151
News programmes 1 237 1 660 1 309
Programmes for senior citizens 117 52 82
Programmes for young persons 59 59 26

Sources: Licensees

Free TV licensees were required to provide Chinese subtitles for all news, current affairs programmes, weather reports and emergency announcements, as well as programmes broadcast during prime time (7:00 p.m. to 11:00 p.m.) on the Chinese channels. They were also required to provide English subtitles for all news, current affairs programmes, weather programmes, emergency announcements and educational programmes for teenagers (two hours per week) on the English channels18.

HKTVE and TVB were required to provide Chinese subtitling for all drama programmes on the Chinese channels and English subtitling for all programmes broadcast on the English channels between 8:00 p.m. and 11:30 p.m. As a whole, Fantastic TV19, HKTVE20 and TVB complied with the requirements on provision of subtitles.

To meet public demand for easier access to information by persons with hearing impairment, the Authority issued a direction requiring TVB21 to provide sign language interpretation, in addition to subtitles, for a Cantonese news programme broadcast on its “Pearl” channel each day with effect from July 2018. TVB met the new requirement.

Pursuant to licence requirements, Fantastic TV, HKTVE and TVB were required to broadcast one minute of Announcements in the Public Interest (APIs) in each hour on each channel. Also, they were required to broadcast, on a weekly basis, not more than five minutes in aggregate of publicity material for the Authority on each of the Chinese and English channels22. During the period under review, Fantastic TV, HKTVE and TVB broadcast a total of 1 259 hours of the two types of materials23.

Sound Broadcasting

As regards sound broadcasting services, sound broadcasting licensees were required to broadcast at least 28.5 hours of positive programmes24 per week. CRHK and Metro reported that they had complied with the licence conditions on broadcast of positive programmes.

All sound broadcasting licensees were required to broadcast one minute of APIs in each hour and not more than five minutes of publicity material for the Authority each week on each service channel. All licensees complied with the requirements.

Figure 8: Broadcast of Positive Programmes on Sound Broadcasting Services (as at March 2019)
Programme TypesCRHKMetro
Weekly Average Hours
News/Weather Programmes 50.58 52.1
Current Affairs Programmes 22.5 10
Arts and Culture Programmes 6.83 11
Programmes for Senior Citizens 1.5 7.5
Programmes for Young Persons 2 4.2
Children’s Programmes 2 0.5

Sources: Licensees

5.1.5 Hong Kong as a Regional Broadcasting Hub

Hong Kong is a broadcasting hub in the Asia-Pacific region, with 14 non-domestic TV licensees operating in and broadcasting from Hong Kong. Altogether they offered a total of 221 satellite television channels with 47 channels receivable in Hong Kong, serving viewers in the Asia-Pacific region, Europe and Africa. A summary of non-domestic TV services as at March 2019 is at Annex 1.

Telecommunications

5.2 An Overview of the Telecommunications Market

Hong Kong has one of the most sophisticated and successful telecommunications market in the world. This has been an important factor in Hong Kong’s development as a leading business and financial centre. In 2018, the telecommunications sector employed around 19 900 persons whilst its gross output amounted to $91 billion in 2017.

All sectors of Hong Kong’s telecommunications market have been liberalised with no foreign ownership restrictions. The Authority’s objectives are to maintain a level playing field in the open and competitive telecommunications market and to ensure that consumers get the best services available in terms of efficiency, quality and price.

5.2.1 The Telecommunications Regulatory Regime
Carrier Licences

The Authority issues carrier licences to facility-based operators, authorising them to establish and maintain telecommunications networks and facilities which may cross unleased Government land and public streets, for the provision of public telecommunications services.

The unified carrier licensing framework has been implemented since 1 August 2008 as the single licensing vehicle for the provision of facility-based fixed, mobile and/or converged telecommunications services in Hong Kong.

A Unified Carrier Licence (UCL) for the provision of local fixed service authorises the licensee to establish and maintain fixed network, wireline-based or wireless-based, or a combination of both where applicable, to provide local telecommunications services between fixed points within Hong Kong. A UCL for the provision of external fixed service authorises the licensee to provide external facilities as well as external services operated over external facilities. A UCL for the provision of mobile service enables the licensee to provide two-way communications between moving locations or between a moving location and a fixed location in Hong Kong. The issue of new UCL for the provision of mobile service is subject to the availability of radio spectrum for assignment. An operator may apply for a single UCL to provide all the above services.

Fixed Carrier Licences (FCLs) and Mobile Carrier Licences (MCLs) which were issued before the introduction of the UCL remain valid until their expiry. Holders of FCL and MCL may apply to the Authority for a UCL to replace their licences before or upon expiry.

As at March 2019, there were a total of 58 carrier licensees, providing local fixed services, cable-based external fixed services, non cable-based external fixed services and/or mobile services. Among them, there were one holder of each of FCL25 and MCL, while the remaining were UCL holders.

Public Radiocommunications Service Licences

Services which may be authorised under the Public Radiocommunications Service (PRS) Licence include radio paging, community repeater (trunked radio) services, vehicle location information services, one-way data message services, public mobile radio data services and railway signaling services.

As the provision of radiocommunications services requires the assignment of suitable operating frequencies, PRS Licences are granted only when the required radio spectrum is available.

As at March 2019, there were a total of eight PRS licensees.

Services-based Operator Licences

Services-based Operators (SBO) make use of the networks and facilities of other licensed facility-based operators for the provision of public telecommunications services, but they are not authorised to establish or maintain any telecommunications means which cross public streets or unleased Government lands.

SBO licence covers three types of services, namely, Class 1 and Class 2 local voice telephony services, and Class 3 services which may include external telecommunications service, Internet access service, international value-added network service, MVNO service, private payphone service, public radio communications relay service, security and fire alarm signals transmission service, teleconferencing service and mobile communications service on board an aircraft.

As at March 2019, there were a total of 517 SBO licensees.

Class Licences

The class licensing framework does not require any licence applications. Parties meeting the specified eligibility criteria and conditions automatically become the class licensees, and are required to comply with the conditions set out in the relevant Class Licence as well as the TO. Currently, there are nine types of Class Licences:

  1. Class Licence for 79 GHz Automotive Radar
  2. Class Licence for 60 GHz Device
  3. Class Licence for Citizens Band Radio Station
  4. Class Licence for In-building Telecommunications Systems
  5. Class Licence for Medical Implant Communication System Device
  6. Class Licence for Short Range Device
  7. Class Licence for Taxi Mobile Station
  8. Class Licence for Offer of Telecommunications Services
  9. Class Licence for Provision of Public Wireless Local Area Network Services
Other Licences

Apart from the licences mentioned above, there are a number of miscellaneous licences under the purview of the Authority.

A breakdown of the types and numbers of all telecommunications licences is at Annex 2.

5.2.2 Developments in the Telecommunications Market and Technology Trends
Mobile Communications Services

Competition in public mobile services has been keen. As at March 2019, four MNOs, namely, China Mobile Hong Kong Company Limited, Hong Kong Telecommunications (HKT) Limited, Hutchison Telephone Company Limited and SmarTone Mobile Communications Limited (SmarTone), were providing a wide range of public mobile services. The availability of mobile number portability since March 1999 has contributed to promoting effective competition among the MNOs as it enables customers to retain their telephone numbers in switching mobile service subscriptions between MNOs.

The four MNOs provide 2G, 3G and 4G services in Hong Kong at very affordable prices. As at March 2019, there were about 22.6 million subscriptions to mobile communications services. The mobile subscriber penetration rate26 reached 276.1%, one of the highest in the world. The number of 3G/4G subscriptions totalled 22 million in March 2019 and the subscriber penetration rate was 266.8%. In line with the increase in service demand, more spectrum was refarmed for the provision of 4G services with a downlink speed up to 1.1 gigabit per second (Gbps).

With the increasing popularity of smart phones, particularly 4G mobile handsets which were readily available in the market, the monthly mobile data usage surged to 54 860 Terabytes in March 2019, representing 1.4 times and 2.2 times of the monthly usage over the same period in 2018 and 2017 respectively. The mobile data usage per capita reached 7 328 Megabytes in March 2019, compared with 5 444 Megabytes in March 2018 and 3 436 Megabytes in March 2017. The continuous development of 4G services is expected to further boost mobile data usage in the future.

Figure 9: Number of Mobile Subscriptions (2009 to 2018)
Year2G3G3G/4G4G
Number of Subscriptions in December
(Million)
2009 8.4 3.8 0.0 0.0
2010 8.2 5.3 0.0 0.0
2011 7.5 0.0 7.4 0.0
2012 6.7 0.0 9.7 0.0
2013 5.1 9.9 0.0 2.2
2014 4.7 8.7 0.0 3.9
2015 2.6 8.3 0.0 5.9
2016 1.6 8.2 0.0 7.4
2017 1.4 4.3 0.0 13.3
2018 0.7 4.4 0.0 16.5

Figure 10: Mobile Subscriptions of Postpaid and Prepaid SIM (2009 to 2018)
YearPost-paidPre-paid
Number of Subscriptions in December
(Million)
2009 6.4 5.8
2010 6.8 6.6
2011 7.2 7.8
2012 7.6 8.8
2013 7.8 9.3
2014 7.9 9.5
2015 8.0 8.8
2016 8.2 9.1
2017 8.6 10.4
2018 9.2 12.4

Figure 11: Mobile Data Usage (2009 to 2018)
Year Yearly Mobile
Data Usage (TB)		 Monthly Mobile Data Usage per
Capita in December (MB)
2009 4 336.6 91.2
2010 14 831.1 262.0
2011 35 136.5 581.5
2012 71 311.4 1 070.2
2013 121 240.7 1 674.3
2014 167 101.7 2 186.7
2015 216 581.6 2 737.8
2016 264 658.6 3 170.5
2017 330 368.0 4 939.2
2018 528 674.1 6 847.6
Fixed Communications Services

The local fixed communications services market has been fully liberalised since 2003. There is no preset limit on the number of licences to be issued for fixed services, or deadline for submission of licence applications. Furthermore, there is no specific requirement on network roll-out and investment and licensees may provide their services according to their proposals.

As at March 2019, there were 27 local fixed carriers, providing around 93 fixed lines per 100 households, one of the highest in the world. They were, in alphabetical order:

  1. 21 ViaNet Group Limited
  2. China Mobile Hong Kong Company Limited
  3. China Mobile International Limited
  4. China Telecom Global Limited
  5. China Unicom (Hong Kong) Operations Limited
  6. ComNet Telecom (HK) Limited
  7. Easy Tone Network Limited
  8. Equinix Hong Kong Limited
  9. HGC Global Communications Limited
  10. HKBN Enterprise Solutions Limited
  11. HKC Network Limited
  12. Hong Kong Broadband Network Limited
  13. Hong Kong Cable Television Limited
  14. Hong Kong Telecommunications (HKT) Limited
  15. NTT Com Asia Limited
  16. PCCW Global (HK) Limited
  17. PCCW-HKT Telephone Limited and Hong Kong Telecommunications (HKT) Limited
  18. Reach Networks Hong Kong Limited and Reach Cable Networks Limited
  19. SmarTone Communications Limited
  20. Superloop (Hong Kong) Limited
  21. Telstra International HK Limited and Telstra International Limited
  22. Towngas Telecommunications Fixed Network Limited
  23. TraxComm Limited
  24. Verizon Hong Kong Limited
  25. Village Telephone Limited
  26. Vodafone Enterprise Global Network HK Limited (renamed as Vodafone Enterprise Hong Kong Limited on 1 April 2019)
  27. WTT HK Limited (renamed as HKBN Enterprise Solutions HK Limited on 26 August 2019)

As at March 2019, 90.2% and 79.2% of households were able to enjoy a choice of at least two and three self-built customer access networks respectively. It is expected that the figures will keep growing as the carriers continue to roll out their networks.

Since 1995, local fixed carriers have been required to facilitate fixed number portability, enabling consumers to switch between fixed carriers without having to change their telephone numbers.

Fixed Broadband Services

As at March 2019, 27 facility-based operators and 224 SBOs were authorised to provide broadband Internet access services in Hong Kong. With the continuous network roll-out of facility-based operators, the Hong Kong community is able to enjoy nearly ubiquitous coverage of broadband networks through the deployment of various technologies including asymmetric digital subscriber line, hybrid fibre coaxial cable, fibre-to-the-building, fibre-to-the-home, etc. Broadband access to various applications and content services has become an integral part of the life of people in Hong Kong. As at March 2019, there were around 2.71 million residential and commercial fixed broadband subscriptions, with a household penetration rate of 93%. Broadband services are available at speeds up to 10 Gbps. Around 80% of the fixed broadband subscriptions used service plans with a speed of 100 Mbps or above. The statistics of fixed broadband subscriptions as at March 2019 and the statistics for the past 10 years are shown in Figure 12 and Figure 13 respectively.

Figure 12: Statistics of Fixed Broadband Subscriptions (as at March 2019)

Description

 No. of subscribers % share
Total No. of broadband subscribers 2 714 679 100%
Broadband speed of 100Mbps or above 2 160 718 79.6%
Broadband speed below 100 Mbps 553 961 20.4%
Residential 2 419 960 89.1%
Commercial 294 719 10.9%

Figure 13: Fixed Broadband Subscriptions (2009 to 2018)
Year Residential Commercial
Number of Subscriptions (Million)
2009 1.77 0.17
2010 1.88 0.18
2011 1.97 0.20
2012 2.05 0.20
2013 2.04 0.22
2014 2.01 0.22
2015 2.04 0.24
2016 2.25 0.25
2017 2.35 0.28
2018 2.37 0.29
Internet of Things Services

Internet of Things (IoT) is a technology which enables the provision of communications platforms and services for interconnected devices to generate, exchange and consume data with minimal human intervention. Currently, both Wireless Internet of Things (WIoT) licensees and MNOs are authorised to provide WIoT services. Since the creation of the WIoT licence in December 2017, three WIoT licences have been issued. With the development of new wireless technologies such as the 5G mobile technologies and smart city applications, it is expected that there will be an increasing number of WIoT devices connecting to the public telecommunications networks in future.

Public Wi-Fi Services

Operators have been actively rolling out Wi-Fi networks. Eight network operators and 181 class licensees are providing public Wi-Fi services. As at March 2019, there were 56 993 public Wi-Fi hotspots in the city and the number continued to grow. Free Wi-Fi services were available to the public in 626 government premises.

External Telecommunications Services

The external telecommunications facilities market has been fully liberalised since 2000. As at March 2019, 40 fixed carriers were authorised to provide cable-based and/or non-cable-based external telecommunications facilities.

As at March 2019, there were eight cable landing stations in Hong Kong: two in Tong Fuk, three in Tseung Kwan O and one each in Deep Water Bay, Chung Hom Kok and Cape D’Aguilar, making it a major telecommunications and Internet hub in the region.

In March 2019, Hong Kong was connected to 11 regional and transcontinental submarine cable systems. They are Asia Africa Europe-1 (AAE-1), Asia-America Gateway Cable System (AAG), Asia Pacific Cable Network 2 (APCN-2), Asia Pacific Gateway (APG), Asia Submarine-Cable Express (ASE), EAC-C2C, FLAG Europe Asia (FEA), FLAG North Asia Loop (FNAL)/REACH North Asia Loop (RNAL), Sea-Me-We 3 (SMW3), South-East Asia Japan Cable System (SJC) and TGN-Intra Asia Cable System (TGN-IA). As at March 2019, the total equipped external capacity exceeded 81 421 Gbps. Total external telephone traffic was 3 billion minutes for the period from 1 April 2018 to 31 March 2019. Landing of five additional submarine cable systems is in the pipeline and they are expected to be ready for service between 2019 and 2021.

Figure 14: Submarine Cables between Hong Kong and Other Countries

[A map showing the submarine cables between Hong Kong and other economies.]

Source: TeleGeography

Satellite Services

Hong Kong adopts an open sky policy in regulating the provision of satellite services. Satellite-based telecommunications and television broadcasting services are provided via a multitude of satellites in the region with more than 200 transmitting/receiving satellite antennae in earth stations operated by a number of fixed carriers and broadcasters.

Licences are required for the operation of satellites and associated facilities. As at March 2019, two Hong Kong companies were licensed to operate and provide satellite communications services, namely Asia Satellite Telecommunications Company Limited and APT Satellite Company Limited, operating a total of 12 in-orbit satellites.

Notes:
  1. Some channels were provided by more than one licensee at the same time.
  2. An exception is that a service provided on the Internet is exempted from the regulatory framework under the BO.
  3. Terrestrial Ultra High Frequency
  4. Hybrid Fibre Coaxial Cable
  5. Microwave Multipoint Distribution System
  6. Passive Optical Network and Digital Subscriber Line
  7. The non-domestic TV services mainly serve viewers in the Asia-Pacific region, Europe and Africa and do not target Hong Kong, but some Hong Kong households can receive the unencrypted channels.
  8. Source: HKTAM Establishment Survey, CSM Media Research
  9. According to a public survey conducted from August to October 2017, about 88% of the households in Hong Kong were receiving DTT services.
  10. Penetration of licensed pay TV services is calculated by dividing the total number of subscribers to licensed pay TV services by the total number of households. Some subscribers were counted more than once if they subscribed to more than one pay TV service.
  11. Some subscribers were counted more than once if they subscribed to more than one service.
  12. Source: Company reports of major broadcasting licensees providing television programme services in Hong Kong.
  13. These include sales of advertising spots within programme breaks, programme sponsorship and product placement.
  14. Source: Adspend Report for 2018 of admanGo. All the advertising expenditures presented in the report have taken into consideration the discount factor based on an assumption of an off rate card rate. It is stated in the Adspend Report for 2018 that to accommodate the rate card for digital media, the off rate card rate has been revised from the previous 60% to the current 75%.
  15. TVB has agreed to increase its independent local productions incrementally from 20 hours per year in 2016 to 60 hours per year by 2020. Fantastic TV has also agreed to increase such productions incrementally from 20 hours per year in 2018 to 60 hours per year by 2022.
  16. The positive programmes that Fantastic TV, HKTVE and TVB were required to broadcast comprised news, current affairs programmes, documentaries, arts and culture programmes, children’s programmes and programmes for senior citizens and young persons.
  17. TVB was required to broadcast at least 45.5 hours of positive programmes per week, including four hours of positive programmes per week on its thematic digital channels (viz. “J2”, “TVB Finance & Information Channel” and “TVB News Channel”). To provide more flexibility for new free TV licensees, HKTVE was allowed to gradually increase the broadcast of positive programmes from 34.5 hours per week in 2016 to 41.5 hours per week by 2019. As Fantastic TV uses a fixed network as its transmission means to deliver free TV service, the programme requirements of Fantastic TV are less stringent than those applicable to other spectrum-based free TV licensees (viz. HKTVE and TVB). It was required to broadcast at least 27.5 hours of positive programmes per week.
  18. TVB was also required to provide, on its thematic digital channels, Chinese subtitles for all news, current affairs programmes, weather reports and emergency announcements as well as programmes broadcast during prime time.
  19. To provide more flexibility for new free TV licensees, Fantastic TV was allowed to step up the subtitling service incrementally from 2018 to 2020.
  20. To provide more flexibility for new free TV licensees, HKTVE was allowed to step up the subtitling service incrementally from 2016 to 2019.
  21. In the context of the licence renewal exercise of TVB in 2015, the Authority took note of the increasing demand from persons with hearing impairment for sign language interpretation for news programmes and agreed to facilitate the provision of sign language interpretation for news programmes as a new initiative. The CE in C accepted the Authority’s recommendation and included an enabling provision in TVB’s renewed licence to require it to provide sign language for its free TV service as directed by the Authority.
  22. TVB was required to broadcast two minutes of publicity material for the Authority per week on its thematic digital channels.
  23. If a free TV channel was simulcast in both analogue and digital formats, the total number of hours of APIs and publicity material for the Authority were calculated only by reference to the materials broadcast in digital format.
  24. The positive programmes that CRHK and Metro were required to broadcast comprised news and weather programmes, current affairs programmes, arts and culture programmes and advisory programmes, viz. programmes for young persons, senior citizens and children.
  25. The last FCL expired on 3 May 2019.
  26. Calculation of the overall mobile subscriber penetration rate and that for subscribers of 3G/4G services does not include machine type connections.