Hong Kong lost 198,596 mobile subscribers in January 2025, ending the year with 27.85 million mobile customers. Of the total, 10.27 million were postpaid users and 17.37 million were prepaid customers, according to figures from the Office of the Communications Authority (OFCA). Hong Kong mobile subscribers

This decline underscores the evolving dynamics of the region’s telecom landscape, influenced by technological advancements, shifting consumer preferences, and strategic decisions by service providers.

Factors Contributing to Subscriber Decline

1. Transition Away from 3G Networks

A pivotal factor in the subscriber reduction is the ongoing phase-out of 3G services. China Mobile Hong Kong (CMHK) announced plans to discontinue its 3G network by June 30, 2025, following approval from the Communications Authority. This move aligns with global trends where telecom operators are retiring legacy networks to reallocate resources towards more advanced technologies like 4G and 5G. CMHK reported that 3G users constituted less than 0.25% of its subscriber base, highlighting the diminishing relevance of older network technologies.

2. Market Saturation and High Mobile Penetration

Hong Kong boasts one of the highest mobile penetration rates globally, with 17.4 million active cellular connections in early 2025, equating to 235% of its population. Such saturation suggests that most individuals possess multiple mobile connections, leading to a natural plateau in new subscriber growth and potential consolidation of existing subscriptions.

3. Evolution of Consumer Behavior

The proliferation of over-the-top (OTT) services and internet-based communication platforms has altered consumer behavior. Users increasingly rely on applications like WhatsApp, Zoom, and other VoIP services, reducing dependence on traditional mobile voice and SMS services. This shift may prompt consumers to reevaluate the necessity of multiple mobile subscriptions, especially those offering redundant services.

Implications for the Telecom Industry

The reduction in mobile subscribers presents both challenges and opportunities for Hong Kong’s telecom operators:

• Network Optimization: The retirement of 3G networks allows operators to reallocate spectrum and resources to enhance 4G and 5G services, improving overall network efficiency and performance.
• Service Diversification: To counteract subscriber losses, telecom companies may explore diversifying their service offerings, such as bundling mobile services with broadband, pay-TV, or introducing value-added services tailored to consumer needs.
• Focus on Customer Retention: With market saturation, retaining existing customers becomes paramount. Operators might invest in loyalty programs, personalized plans, and improved customer service to maintain their subscriber base.

Looking Ahead Hong Kong mobile subscribers

While the immediate loss of 200,000 subscribers is notable, it reflects broader industry trends towards modernization and efficiency. As Hong Kong continues to embrace advanced mobile technologies and consumers adapt to new communication paradigms, the telecom sector is poised for transformation. Operators that proactively adapt to these changes, focusing on innovation and customer-centric strategies, will be better positioned to thrive in this evolving landscape.