The Hong Kong telecoms market is advanced in terms of the maturity of market liberalisation, technology advancement, political and socio-economic ties with mainland China (particularly around the harmonisation of technical standards and spectrum planning), and the way in which competition has developed.
Hong Kong’s fixed market is very competitive with 11 licensed operators providing local fixed network services. In the broadband market, Hong Kong ranks highly in terms of household penetration and in its next-generation access (NGA) development. Its FTTH/B household penetration is ranked second in the world by the FTTH Council. Fixed–mobile convergence is to be strengthened, with regulator OFTA modifying the services-based operator (SBO) licence by allowing VoIP service providers to provide services to mobile customers.
In the mobile market, there are five network operators providing mobile services using various standards. With auctions in January 2009 for spectrum suitable for wireless broadband, the winning operators are already preparing and communicating their strategies for using the newly acquired spectrum, with a preference for LTE. This will significantly enhance the speed and capacity of wireless broadband services.