The investment enhances China Mobile’s foothold in Hong Kong’s broadband sector, leveraging HKBN’s extensive infrastructure and subscriber base. HKBN provides residential and enterprise fiber broadband services, as well as data center solutions, serving a significant portion of Hong Kong’s telecommunications market. With an all-fiber network covering 2.6 million homes and approximately 932,000 residential broadband subscribers, HKBN is a key player in the region’s connectivity landscape.
China Mobile’s CEO, He Biao, emphasized the strategic value of the acquisition: “Following completion of the offers, the offeror will continue to consider how best to support the group's future development and expansion, as well as integration within the China Mobile Group to maximize synergies.” This move aligns with China Mobile’s goal to expand its presence beyond mobile services, integrating fixed-line and broadband capabilities to offer bundled services and enhance operational efficiency.
The acquisition has been reviewed by Hong Kong’s Communications Authority to assess its impact on market competition, particularly in the fixed local access network. The authority accepted commitments from China Mobile to ensure open access to infrastructure and non-discriminatory pricing, addressing potential concerns about market dynamics. These measures aim to maintain a competitive telecommunications environment in Hong Kong.
This development follows a period of market interest in HKBN, with its shares rising 24% in 2024, reflecting confidence in its growth potential. The acquisition positions China Mobile to capitalize on HKBN’s established network and enterprise business, which is its largest revenue segment, to drive cost synergies and expand service offerings in Hong Kong’s competitive telecommunications market.
