Hong Kong FWA services market set for 9.6% growth

Analysis from GlobalData is forecasting that fixed wireless access (FWA) service revenue in Hong Kong is expected to increase at a “healthy” compound annual growth rate (CAGR) of 9.6% between 2025 and 2030.

The latest Hong Kong Total Fixed Communications Forecast set out to quantify current and future demand and spending on mobile services for the special administrative region of China. It noted that growth was being driven by Hong Kong’s extensive 5G network coverage and could also be attributed to local operators’ efforts to expand FWA services and position it as an alternative to traditional fibre broadband services for both residential and commercial sectors, meeting growing demand for high-speed connectivity in areas where extending fibre lines is challenging.

“High-density urban and suburban centres of Hong Kong create a strong business case for FWA services due to their cost-effective and rapid deployments without the complex infrastructure and civil work required for extending fibre-optic lines to such locations,” said Neha Misra, senior analyst at GlobalData.

“Competitive, feature-rich plans from the operators will also help drive its adoption over the forecast period. For instance, HKBN’s 5G Home Broadband Plan provides unlimited 5G broadband data (subject to a 300GB with a fair-usage policy) for HKD118 per month on a 24-month contract, along with a seven-day trial guarantee. The plan also includes a waiver of the HKD28 monthly administration fee and complimentary access to the basic HomeShield security plan.”

In addition to HKBN, the study noted that operators such as 3 Hong Kong and HKT are also using their extensive 5G networks to offer home broadband services, particularly in areas with limited fibre infrastructure. It cited HKT as recently having successfully deployed mmWave-based FWA to deliver ultra-high-speed internet to rural areas and outlying islands.

“Growing demand for FWA provides operators a strong revenue opportunity by expanding home and SME broadband without the high capital intensity of fibre roll-out,” Misra added. “By leveraging nationwide 5G coverage, introducing competitively priced service plans and bundling digital home services, operators can unlock higher ARPU [average revenue per user], accelerate market penetration in underserved areas and diversify beyond traditional revenues.”

GlobalData believes the Hong Kong government’s smart city initiatives will also open new opportunities for FWA, especially 5G FWA, which can deliver high-speed internet to power applications such as the digital economy, digital governance and e-health services, while supporting the city’s dense urban environment and digital transformation goals under the Smart City Blueprint 2.0.

The original blueprint was set out in December 2017, outlining 76 initiatives under six smart areas, namely Smart Mobility, Smart Living, Smart Environment, Smart People, Smart Government and Smart Economy. Blueprint 2.0 puts forth more than 130 initiatives that continue to enhance and expand existing city management measures and services. The new initiatives aim to bring benefits and convenience to the public so that residents can better perceive the benefits of smart city innovation and technology.