HKT Trust and HKT Business Model Canvas

HKT actively partners with government and public sector organizations to drive digital transformation, focusing on smart city development and public healthcare. For instance, HKT's commitment to Hong Kong's technological advancement is evident in its support for initiatives like the Smart City Blueprint 2.0, aiming to enhance urban living through technology.

HKT provides advanced solutions by integrating technologies such as 5G, AI, and IoT. A prime example is the Smart Site Safety System, which leverages these technologies to improve safety in the construction sector, a key area for public infrastructure development. Furthermore, HKT is instrumental in modernizing network infrastructure for public hospitals, ensuring efficient and reliable communication for critical healthcare services.

• Smart City Initiatives: HKT's involvement in Hong Kong's Smart City Blueprint 2.0 underscores its role in public sector digital transformation.
• Public Healthcare Modernization: HKT upgrades network infrastructure for public hospitals, enhancing service delivery.
• Technology Integration: The company utilizes 5G, AI, and IoT to deliver solutions like the Smart Site Safety System.
• Community Well-being: These efforts contribute to Hong Kong's overall technological advancement and community well-being.

HKT strategically partners with major international telecom operators to enhance its global service portfolio. These collaborations are crucial for offering seamless roaming capabilities to its customers, ensuring connectivity as they travel abroad. For instance, in 2024, HKT continued to strengthen its relationships with key global carriers to expand its high-speed data and voice services across numerous countries.

These alliances are fundamental to HKT's strategy of supporting businesses with their international operations. By integrating with global networks, HKT facilitates cross-border communication and data transfer, which is particularly important for Hong Kong companies looking to expand into mainland China and other international markets. This network of partners allows HKT to offer comprehensive solutions for multinational clients.

The partnerships extend HKT's market reach and bolster its competitive edge by providing a wider array of services. This includes:

• Enhanced Roaming Services: Offering competitive rates and wider coverage through agreements with over 400 international mobile network operators as of early 2024.
• Cross-Border Business Solutions: Facilitating seamless connectivity for enterprises operating between Hong Kong, mainland China, and other global destinations.
• Access to New Markets: Enabling HKT to tap into new customer segments and offer localized services in partnership with foreign telecom providers.

HKT's brand reputation in Hong Kong is a cornerstone of its business, built over 150 years as a premier telecommunications provider. This deep-rooted trust translates into a significant competitive advantage.

The company boasts a substantial and loyal customer base, encompassing both residential and business sectors. This extensive reach provides fertile ground for expanding service offerings and increasing revenue through strategic cross-selling and up-selling initiatives.

• Brand Recognition: HKT is recognized as a leading and dependable telecommunications company in Hong Kong, a testament to its long operational history.
• Customer Loyalty: The significant customer base, exceeding 4 million members in The Club loyalty program alone, demonstrates strong customer retention and engagement.
• Cross-selling Potential: This large, loyal customer base offers substantial opportunities to introduce and sell additional HKT products and services, such as broadband, mobile, and entertainment solutions.
• Up-selling Opportunities: HKT can leverage its established relationships to encourage customers to upgrade to higher-tier services or premium offerings, thereby increasing average revenue per user.

HKT Trust's intellectual property is a cornerstone of its business model, encompassing proprietary technologies and solutions honed through internal development. This internal innovation fuels its competitive edge, allowing for unique service delivery and product differentiation within the telecommunications and digital services landscape.

The company's strategic advantage is significantly amplified by its access to valuable customer data. This data, gathered through its extensive digital ecosystem, enables HKT to craft highly personalized service offerings. For instance, in 2024, HKT reported a substantial increase in customer engagement metrics directly attributable to its data-driven marketing campaigns.

Furthermore, HKT cultivates exclusive data sets and maintains trusted partnerships, enhancing its data capabilities. This curated access is instrumental in improving up-selling and cross-selling conversion rates, as demonstrated by a reported 15% uplift in these metrics during the first half of 2024 compared to the previous year. This focus on data monetization and utilization is a key driver of HKT's revenue growth.

• Proprietary Technologies: HKT develops and deploys its own innovative solutions, providing a competitive advantage.
• Customer Data: The vast amount of customer data collected through its digital ecosystem is leveraged for personalized services.
• Exclusive Data Sets & Partnerships: Access to unique data and trusted collaborations enhance service offerings and sales effectiveness.
• Improved Conversion Rates: Data-driven strategies led to a 15% increase in up-selling and cross-selling in H1 2024.

HKT actively engages with the Hong Kong community, aligning with government efforts to foster digital inclusion. This commitment is demonstrated through initiatives promoting digital literacy and ensuring access to technology for all segments of society. For instance, HKT's dedication to smart city development aims to enhance the lives of residents by integrating technology into urban living.

HKT's customer relationships are built on a foundation of community engagement and digital inclusion. In 2024, the company continued its efforts to bridge the digital divide, recognizing its responsibility to empower the Hong Kong population. This focus ensures that HKT's advanced services are accessible and beneficial to a broad user base, contributing to a more connected and digitally adept community.

• Digital Literacy Programs: HKT regularly conducts workshops and training sessions to improve digital skills among various age groups, particularly the elderly and less tech-savvy.
• Smart City Contributions: The company plays a vital role in Hong Kong's smart city infrastructure, deploying advanced telecommunications solutions that enhance urban efficiency and citizen experience.
• Community Support: HKT partners with local organizations and government bodies to support social welfare programs, often leveraging its technological capabilities to aid community development.
• Service Accessibility: Efforts are made to ensure that HKT's diverse range of services, from broadband to mobile, are accessible and affordable, catering to the needs of a wide spectrum of customers.

HKT actively manages its customer relationships by continuously improving its fibre and mobile networks. This proactive approach ensures services are not only reliable but also ready for future technological demands, like advanced 5G applications and enhanced broadband speeds. For instance, HKT invested significantly in its network infrastructure throughout 2023 and early 2024, aiming to boost capacity and reduce latency, directly impacting customer experience.

This dedication to service quality and forward-thinking development fosters strong customer loyalty. By anticipating needs and addressing potential network issues before they affect users, HKT builds trust. This strategy is crucial in the competitive telecommunications market, where consistent performance and innovation are key differentiators. In 2024, HKT continued to roll out its 5G network enhancements, aiming for wider coverage and faster speeds, a direct benefit to its mobile customers.

• Network Investment: HKT's ongoing capital expenditure in 2023 and 2024 focused on fibre broadband upgrades and 5G network expansion.
• Service Reliability: Proactive maintenance and network optimization are central to HKT's strategy for ensuring high service uptime.
• Future-Proofing: Investments in next-generation technologies prepare customers for emerging digital services and applications.
• Customer Satisfaction: Enhanced network performance and reliability directly contribute to increased customer retention and satisfaction scores.

HKT is a vital partner for international companies establishing or expanding their operations in Asia, particularly in mainland China. They provide the essential global connectivity and sophisticated digital ICT solutions that businesses need to navigate complex cross-border trade and regulatory environments. This segment relies on HKT for seamless communication and robust IT infrastructure to manage international supply chains and customer bases.

For Hong Kong-based enterprises aiming for global reach, HKT offers comprehensive support. This includes enterprise-managed services designed to streamline operations across different geographies. Their expertise helps these businesses overcome the challenges of international expansion, ensuring reliable network performance and secure data management.

• Global Connectivity: HKT's extensive network infrastructure is crucial for businesses operating across multiple countries, facilitating uninterrupted communication and data flow.
• Digital ICT Solutions: The company provides advanced Information and Communications Technology services, including cloud computing and cybersecurity, essential for modern international business operations.
• Enterprise Managed Services: HKT offers outsourced management of IT and communication systems, allowing businesses to focus on their core competencies while HKT handles the technical complexities of global operations.
• Market Access: For Hong Kong firms, HKT acts as a facilitator for market entry and growth in mainland China and other international markets, leveraging its local presence and expertise.

HKT is actively cultivating a burgeoning customer base within the data center, cloud, and AI service provider sectors. These clients are characterized by their substantial demand for high-bandwidth and ultra-low-latency fiber optic services. A prime example of HKT's tailored offerings for this segment is the 800G AI Superhighway, designed to meet the rigorous connectivity needs of advanced computing environments.

The core value proposition for these customers lies in HKT's ability to furnish the essential network infrastructure. This infrastructure is critical for facilitating next-generation data center interconnectivity and supporting the immense processing power required for AI supercomputing resources. For instance, HKT's extensive fiber network plays a pivotal role in enabling seamless data flow between data centers, crucial for AI model training and deployment.

• High-Bandwidth Demand: Data center and AI providers require networks capable of handling massive data volumes, driving the need for services like the 800G AI Superhighway.
• Ultra-Low Latency: Real-time AI applications and efficient data center operations depend on minimal delay, a key performance indicator HKT addresses.
• Network Infrastructure: HKT provides the foundational fiber optic connectivity that underpins modern cloud and AI ecosystems.
• Growth Segment: This customer segment represents a significant area of expansion for HKT, reflecting the broader industry trend towards increased digital infrastructure investment.

HKT Trust's Media Entertainment Services revenue is primarily generated through its Pay TV service, Now TV, and its Over-The-Top (OTT) service, Now OTT. This segment has demonstrated resilience, even amidst a competitive landscape, with growth fueled by customers adopting updated service offerings.

In 2024, HKT reported that its media segment, which includes Now TV, continued to be a significant contributor. The company focused on enhancing its content library and user experience to drive subscriber engagement and acquisition. For instance, the introduction of new sports broadcasting rights and exclusive drama series have been key strategies to attract and retain customers.

• Now TV Subscription Fees: Revenue derived from monthly subscription charges for various Now TV packages, including sports, movies, and general entertainment.
• Now OTT Service Revenue: Income generated from users accessing media content via the Now OTT platform, which often includes on-demand viewing and live streaming options.
• Advertising and Sponsorships: Additional revenue streams from advertising slots within the media content and sponsorship deals for specific programs or channels.

HKT is actively growing its revenue through new digital ventures and fintech services. These initiatives are a key part of their strategy to diversify beyond traditional telecommunications. The Club loyalty program is a central hub for many of these offerings, providing a platform for e-commerce and specialized fintech solutions.

This digital expansion taps into evolving consumer behaviors. HKT's focus on these areas aims to capture a larger share of the digital economy, offering customers integrated services that go beyond basic connectivity. For instance, the growth in digital services contributes to a more robust revenue mix.

• E-commerce Platforms: Revenue generated from sales and transactions on HKT's digital marketplaces.
• Digital Ventures: Income streams from new digital products, services, and partnerships.
• Fintech Services: Earnings from payment solutions, digital wallets, and other financial technology offerings within The Club ecosystem.
• Value-Added Services: Revenue from premium digital content, subscriptions, and enhanced loyalty program benefits.