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

Hong Kong: Mobile Data Becomes the Focus of Leading Hong Kong Operators offers a precise, incisive profile of the country's converged telecommunications, media, and technology sectors based on proprietary data from our research in the Hong Kong market. This 28-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies, such as WiMAX, IPTV, and VoIP. It provides a comprehensive view of the Hong Kong communications market by analyzing key trends, evaluating near-term opportunities, and assessing upcoming risks factors.

"This rise in the market share of mobile services is due to the accelerating adoption of mobile broadband services," says Daniel Yu, Analyst at Pyramid Research and author of the report. "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 adds.

The report finds that 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 per cent at year-end 2008 to 86 per cent at year-end 2014."

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 per cent CAGR, to US$22.86 million in 2014. "Operators will also rely heavily on 3G+ networks to offer innovative and revenue-generating VAS, such as mobile TV, media downloads, gaming and customized applications," Yu explains. "Messaging services will still contribute 55 per cent of total data revenue in 2009, but as 3G services become even more pervasive, infotainment and connectivity will together make up 61 per cent of total data revenue by 2014."
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