I am pleased to present the 2024/25 Trading Fund annual report prepared by OFCA. This report provides an overview of how Hong Kong’s communications market has been performing, highlights our key progress and achievements over the past year, as well as outlines the steps we have taken to support further development in the communications sector.

Market Overview

Over the past year, Hong Kong’s communications sector continued to perform well. Despite a complex and changing economic landscape, the industry stayed strong and robust, reflecting its resilience and ability to navigate challenges as the broader economy made steady progress.

Telecommunications Market

Hong Kong has one of the most advanced and competitive mobile service market in the world. As of March 2025, there were around 27.8 million mobile service subscriptions – equivalent to a penetration rate of almost 360%, one of the highest globally. Along with economic transformation, mobile data usage has kept increasing. Users consumed approximately 252 983 terabytes of mobile data, or about 33 GB per capita, marking a 16% increase year on year.

Local mobile network operators (MNOs) have been actively expanding their fifth generation (5G) networks. Today, 5G coverage reaches all populated areas, major shopping centres, and MTR stations. With around 8.8 million 5G subscribers, representing over 116% of the population, high-speed mobile connectivity has become essential to meeting the needs of Hong Kong people. This widespread adoption is paving the way for new innovative applications and business opportunities across various industries.

On the fixed broadband front, household penetration remained high at over 97%, with around 87% of these households connected via optical fibre. Fibre technology is the backbone of Hong Kong’s fixed network, offering fast and reliable internet access for both individuals and businesses. Over 71% of households were using high-speed broadband services at speeds of 1 Gbps or above.

Broadcasting Market

The broadcasting sector also maintained steady development in 2024/25. Viewers in Hong Kong could have access to over 700 local, Chinese Mainland (the Mainland) and overseas TV programme channels in multiple languages, available through free-to-air, pay and satellite TV services. There are also 14 local radio programme channels available. Thanks to Hong Kong’s strategic location and robust communications infrastructure, the city continues to serve as a regional hub for satellite broadcasting. Currently, nine non-domestic television programme service licensees are operating around 150 satellite TV channels across the Asia-Pacific region. Under the Government’s Open Sky Policy, local audiences can also access about 500 free satellite channels.

Highlights of Our Work in 2024/25

Below is an overview of the key initiatives and measures of OFCA over the past year:

Telecommunications Services

To support the continued rollout of advanced mobile services, two spectrum auctions were held in November 2024 with 110 MHz of spectrum in the 850/900 MHz, and 2.3 GHz bands, and 300 MHz of spectrum in the newly introduced 6/7 GHz band acquired by MNOs for the provision of public mobile communications services. The release of spectrum in the 6/7 GHz band, which is suitable for the deployment of current 5G and future sixth generation (6G) mobile services, not only made Hong Kong the global first mover in the release of relevant frequency band for 6G development, but also demonstrated our vision for the long-term development of the mobile market. The spectrum in the 6/7 GHz band was assigned in March 2025, while the spectrum in the 850/900 MHz and 2.3 GHz bands will be re-assigned when current assignments expire in May 2026 and March 2027 respectively. In addition, OFCA administratively assigned another 1 200 MHz of spectrum in the 26/28 GHz band to MNOs in August 2024 for provision of 5G or more advanced mobile services.

OFCA is also closely monitoring global and regional trends in spectrum planning to stay aligned with international developments. OFCA continues to follow up on the use of various frequency bands identified at the 2023 World Radiocommunication Conference held by the International Telecommunication Union (ITU), ensuring the allocation for different radiocommunications services in Hong Kong.

To support MNOs to expand their 5G networks, OFCA has been facilitating the installation of radio base stations (RBSs) at government premises and public facilities such as phone kiosks, bus stops, and smart lamp posts. A major policy milestone was the enactment of the Telecommunications (Amendment) Ordinance 2024 in February 2024. This facilitates MNOs’ access to reserved space in new and redeveloped buildings – commercial, industrial, residential, and hotels – for installation and maintenance of mobile communications facilities. The new requirement took effect on 1 October 2024 and will apply to specified buildings with building plans approved from 1 April 2025 onwards. New government buildings and public housing will follow suit. The arrangement will help further expand and improve the mobile coverage and capacity across the city.

To boost 5G performance at major public event venues, OFCA has been working with MNOs, venue operators, and government departments to streamline the approval and installation procedures to facilitate prompt installation of RBSs. These efforts have already enhanced 5G services at key locations including the Central Harbourfront Event Space, Hong Kong Coliseum, Hong Kong Convention and Exhibition Centre, AsiaWorld-Expo, Victoria Park and Kai Tak Sports Park. These installations enhance 5G network capacity and ensure smoother connectivity for users participating in large-scale events.

Looking ahead, more spectrum will be made available to support the development of 5G and more advanced mobile services (including 6G), with another auction involving a total of 50 MHz in the 2.5/2.6 GHz band to be held in the fourth quarter of 2025. MNOs will continue to benefit from full tax deductions on spectrum utilization fees under the Inland Revenue (Amendment) (Tax Deductions for Spectrum Utilization Fees) Ordinance 2024, which came into effect in January 2024. These efforts aim to ensure that Hong Kong is better placed to support more advanced and wider applications of communications technology.

Another major project in 2024/25 is the preparatory work of the Subsidy Scheme to Extend 5G Coverage in Rural and Remote Areas, which was announced in the 2023 Policy Address to further enhance the mobile network infrastructure in rural and remote areas. OFCA completed the industry and district consultations on the proposed framework and site locations under the scheme. Following funding approval by the Legislative Council (LegCo), OFCA will launch the scheme in 2025 in phases, with new RBSs installation completed and put into service within four years after launching the scheme, thus improving the quality of life of the people and safeguarding the safety of activities in rural and remote areas. Besides, OFCA has been implementing the Subsidy Scheme to Extend Fibre-based Networks to Villages in Remote Areas, with a total budget of HK$770 million since 2019. As of March 2025, over 220 out of 235 villages have already been connected by fibre. OFCA will keep on monitoring the progress to ensure that all the targeted villages will be connected by 2026.

To address the public concerns on phone scams, OFCA has been working closely with the Police and telecommunications service providers (TSPs) through the establishment of a working group in September 2022 to devise and implement a variety of technical measures to combat phone scams while at the same time coordinated public education efforts. One of the key new initiatives introduced in 2024/25 was the introduction of voice alerts for calls made from newly activated local pre-paid SIM (PPS) cards. This measure was successfully rolled out by the industry and complemented existing safeguards, such as blocking suspicious +852 calls originating from outside Hong Kong, issuing voice or text alerts before such calls are received, and suspending services for local numbers that show suspicious calling or messaging patterns. As of March 2025, TSPs had blocked around 5.3 million suspicious +852 calls, suspended about 1.4 million local numbers, and issued over 30 million alerts for +852 calls and 14.8 million alerts for calls from newly activated PPS cards.

OFCA launched the SMS Sender Registration Scheme in December 2023 to help the public verify the identity of SMS senders. Under this scheme, all Registered Senders have to use a sender ID with the prefix “#” when sending SMS messages to local mobile users. Starting from February 2024, the scheme has been open to all sectors for application. As of March 2025, more than 490 organisations – including TSPs, banks, and 77 government departments and statutory bodies – have joined the scheme. OFCA will continue to encourage wider participation to improve the security and credibility of SMS and provide better protection to members of the public.

To further minimise the inconvenience that may be caused by marketing calls, OFCA has worked with industry stakeholders to implement self-regulation through the enhanced Industry Regulatory Scheme for Marketing Calls. The enhancement includes requiring telemarketers to provide their names and contact numbers upon recipients’ requests, as well as limiting the number of calls made to the same number within a specific timeframe. Since June 2024, twelve trade associations from seven sectors, including finance, insurance, telecommunications, call centres, beauty, estate agencies, and money lenders, have joined the scheme and issued their respective code of practice.

Support on Development of Low-altitude Economy

The low-altitude economy (LAE), which refers to economic activities taking place in airspace below 1 000 metres, is creating new possibilities in areas such as aerial surveillance, terrain mapping and logistics. Under the 2024 Policy Address, the Government has established the Working Group on Developing LAE (WG) to formulate development strategies and inter-departmental action plans, starting with projects on low-altitude applications. OFCA actively participated in the WG and contributed from the telecommunications perspective to support the development of LAE.

Protection of Critical Infrastructure in Telecommunications and Broadcasting Sectors

The LegCo passed the Protection of Critical Infrastructures (Computer Systems) Bill on 19 March 2025. The Ordinance aims to strengthen cybersecurity for critical infrastructure, among which, telecommunications and broadcasting sectors have been covered under the Ordinance with Communications Authority (CA) being specified as a designated authority to oversee the relevant obligations of the critical infrastructure operators under the Ordinance. OFCA will support CA on the implementation of the Ordinance which will take effect on 1 January 2026 to ensure that the telecommunications and broadcasting sectors would properly discharge the relevant statutory obligation to protect critical infrastructure in both sectors.

Streamlining the Vetting Procedures of Licence Applications for Operating Low Earth Orbit Satellites

Separately, the 2024 Policy Address announced that the Government would conduct a study on streamlining the vetting procedures of licence applications for operating Low Earth Orbit (LEO) satellites. The aim is to enhance Hong Kong’s attractiveness and competitiveness in the global satellite communications market. The 2025-26 Budget further elaborated that OFCA has been assisting the Commerce and Economic Development Bureau (CEDB) in completing the study within 2025.

Broadcasting Services

To track changes in the viewing and listening habits of the public and gauge their views on television programme services and sound broadcasting services, OFCA commissioned a broadcasting service survey in 2024. The results, released in February 2025, will serve as a useful reference for CA in processing licence renewal applications from major TV and sound broadcasters whose licences are due to expire in 2027 and 2028.

In 2024/25, OFCA supported CA in preparing for the licence renewal exercise of the three domestic free television programme service (free TV) licensees – HK Television Entertainment Company Limited (HKTVE), i-CABLE HOY Limited (i-CABLE HOY), and Television Broadcasts Limited (TVB). These licences are due to expire between March 2027 and May 2028. CA will carry out a detailed assessment of each licensee’s performance before submitting its recommendations to the Chief Executive in Council (CE in C) for consideration.

Major Challenges Ahead

On the broadcasting front, OFCA will be rendering full support to CA in conducting the licence renewal exercises for the free TV licences of HKTVE, i-CABLE HOY and TVB. Amongst others, CA will conduct a consolidated public consultation exercise for the three free TV licensees in the third quarter of 2025. OFCA will also assist CA in evaluating the past performance of the licensees and their future plans. CA’s recommendations will then be submitted to CE in C by March 2026.

On the telecommunications front, following the joint statement issued by CA and the Secretary for Commerce and Economic Development on 1 April 2025 regarding the re-assignment of 50 MHz of spectrum in the 2.5/2.6 GHz band and the related spectrum utilization fee, OFCA will support CA in conducting a spectrum auction for this re-assignment in the fourth quarter of 2025.

After the enactment of the Telecommunications (Amendment) Ordinance 2024, OFCA will continue to support CA in administering authorisations under the amended section 14 of the Telecommunications Ordinance (Cap. 106) (TO). We will also work closely with the Buildings Department and other relevant government departments to ensure unified implementation of the new arrangement.

To support the Government’s initiative to expand mobile network infrastructure in rural and remote areas, OFCA will launch the Subsidy Scheme to Extend 5G Coverage in Rural and Remote Areas in July 2025. With funding of around HK$150 million, the scheme will subsidise MNOs to build new RBSs at about 50 locations, including country parks, outlying islands, and other rural and remote areas. OFCA will monitor the implementation closely, with the aim of having all RBSs in service within four years.

The Real-name Registration Programme for Subscriber Identification Module (SIM) Cards (RNR Programme) was fully implemented in February 2023.
From 1 October 2024, TSPs began using “iAM Smart” as the default registration method for Hong Kong identity card holders, making the process more secure and convenient. OFCA is providing support to CEDB in reviewing the implementation of the RNR Programme, with a view to introducing the relevant legislative amendments into LegCo for scrutiny. Subject to the legislative proposals, we will also revise the relevant guidelines, mount the publicity campaign as well as work closely with the enforcement agencies and TSPs to ensure smooth implementation of the strengthened RNR Programme.

Combating fraudulent calls and messages is an ongoing task for OFCA. Apart from overseeing the effective implementation of the RNR Programme and the SMS Sender Registration Scheme, we will continue to work with the Police and the telecommunications industry, as well as exchange experiences with regulators in other economies, to enhance existing measures and introduce new ones with a view to better protecting telecommunications service users from deception.

To support the development of LAE, OFCA will continue to actively participate in the WG, contributing from the telecommunications perspective. Besides, OFCA will closely monitor developments in the telecommunications market of the Mainland and worldwide, particularly in relation to the use of dedicated spectrum for unmanned aircraft systems, to ensure that spectrum planning in Hong Kong aligns with the Mainland and other advanced economies, thereby promoting the development of LAE activities in Hong Kong.

To lead and promote next generation communications technology and applications, OFCA will assist CA in hosting the 6G Global Summit in Hong Kong in May 2025, marking the first Summit to be held in the Asia-Pacific region. OFCA will continue to take part in the relevant international forums for highlighting Hong Kong’s role as a regional communications hub, showcasing the city’s achievements in advanced telecommunications development and telling the good stories of Hong Kong on the global stage.

All in all, despite the heavy workload in 2024/25, it was once again a rewarding year for OFCA. We successfully completed the long list of tasks as planned, reflecting the strong commitment and professionalism of our colleagues, as well as their dedication to serving the public. I would also like to take this opportunity to express my heartfelt gratitude for the guidance of the Chairman and Members of CA, and for the continued support from our licensees. Their contributions have been vital in helping us meet our regulatory objectives. Looking ahead, OFCA is committed to supporting CA and working hand in hand with the communications industry to foster a vibrant and prosperous communications market – one that continues to serve the public interest and reinforces Hong Kong’s position as a renowned communications hub in the region.