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Hong Kong: Ultra-connected market craves more broadband services

With two-thirds of its households receiving broadband service and virtually all 7 million residents using wireless phones, Hong Kong offers a snapshot of the digital future.

December 14, 2006

This is a saturated market if ever there was one, making it a natural venue for telecom services providers who were in town for ITU World Telecom 2006 last week to market, among other things, the latest in mobile broadband applications.

Six mobile operators running 11 networks are competing head-to-head to offer Hong Kong consumers the latest and hottest mobile solutions and technologies. Yet Hong Kongers still crave more - more entertainment, more interactive features, and more internet features on their beloved mobile phones.

Healthy Ng, a 49-year-old English and Mandarin tutor who can be found fishing at night in the harbor of Kowloon, a sprawling commercial district on the Chinese mainland across from Hong Kong Island, laments the current capabilities, saying: "I can only download three songs. And I can't store more than 30 minutes of songs. It's not convenient."

Edmond Lam, a 21-year-old optical salesman, is eagerly awaiting the day when his mobile phone will offer mapping services. "So I know where I am," he says.

Lam estimates he spends 90 minutes on the phone every day, mostly listening to music or playing mobile games with his friends. The mobile has been his constant companion since he was 15.

With an estimated 123 mobile phones per 100 inhabitants, Hong Kong is one of the most penetrated mobile markets in the world. In June 2006, there were 8.9 million subscribers, with just under 1 million 3G customers, according to Hong Kong government data.

The mobile success has operators racing to offer customers new, cutting-edge services.

In March 2006, for example, wireless operator CSL announced the launch of Hong Kong's first 3G mobile TV service. And in November, Hutchison Whampoa announced that customers served by the operator 3 would be able to make unlimited mobile calls through Skype, the internet telephony provider.

In addition, 3 customers would be able to watch their home television via their mobile, and access their PC remotely from their phone, Hutchison Whampoa announced.

Mobile broadband - and the endless possibilities the service offers - has become a way of life for people in Hong Kong.

Leung King Tai, a 31-year-old primary-school teacher, has been using his mobile phone to access the internet for the past three or four years. He spends at least an hour a day browsing websites or sending e-mails from his mobile.

"I use it whenever I go out, or when I'm traveling," he says. "It's quite easy to use, and it helps me stay in touch with my friends."

But, like so many people in Hong Kong, he also dreams of what his mobile can do for him in the future. On his wish list is being able to shorten to a second or two the time it takes to send files from his mobile phone.

"I also hope that the instant messaging function will become as powerful as that on my desktop PC," Tai says. "I would like to send voice messages, pictures and files from my mobile using instant messaging."