HKT Trust and HKT Ltd. (06823.HK) said it moved early to counter potential pricing pressure on its mobile services amid falling subscriber numbers in the industry.
Managing director Alex Arena said Hong Kong’s overall mobile service subscribers fell for the first time in a decade in July.
The group attributed the decline to market saturation, the Hong Kong Economic Journal reports.
Growth in postpaid mobile subscribers in Hong Kong is slowing while the number of prepaid customers is uneven.
The mobile market penetration rate is 220 percent and the total number of customers is falling, according to the Office of the Communications Authority.
Meanwhile, mobile data usage has increased at a compound annual growth rate of 57 percent in recent years.
Arena said that in this environment, all mobile operators faced challenges in how to monetize data growth and generate sustainable revenue.
He said HKT had anticipated this trend and addressed potential pricing pressure.
In 2012, it moved away from unlimited data plans and introduced data quota plans with top-up option, he said.
Arena said HKT’s acquisition of CSL in 2014 unleashed substantial synergies, particularly in network costs, and these are reflected in improved returns from the mobile business.
HKT Trust and HKT Ltd. is a subsidary of PCCW Ltd. (00008.HK), which is controlled by Richard Li Tzar-kai. Li owns the Hong Kong Economic Journal, parent of EJ Insight.
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