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I'am wondering whether there exists a non-discrete hyperbolic totally disconnected locally compact group such that the boundary is a finite-dimensional sphere. If the answer is positive, could you please provide few examples?

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Non-discrete is not a reasonable assumption: for any hyperbolic group take the direct product with a compact group. Every hyperbolic group locally compact group $G$ has a unique maximal compact normal subgroup $W(G)$, which for $G$ non-elementary is the kernel of the $G$-action on the boundary $\partial G$. A reasonable assumption is to assume that $W(G)=1$, and in this case "non-discrete" is a reasonable assumption. I'll assume so, to make the question non-trivial. I will also assume that by "is a sphere" you mean "is homeomorphic to a sphere" (this is not an anecdotical point: for instance I don't know if there's a single (discrete) hyperbolic group whose boundary is homeomorphic, but not Hölder homeomorphic to a round sphere).

The Hilbert-Smith conjecture asserts that a non-discrete totally disconnected locally compact group cannot act continuously and faithfully on a connected topological manifold.

If one believes this conjecture, then the answer to your question is no. Indeed assume that $W(G)=1$, and that $\partial G$ is homeomorphic to a sphere (which is equivalent to $\partial G$ being a topological manifold):

  • if $G$ is non-elementary, then it acts faithfully and continuously on its boundary $\partial G$, by the Hilbert-Smith conjecture we deduce that $G$ is discrete;
  • if $G$ is any elementary hyperbolic group with $W(G)=1$, then it is known that $G$ has an open subgroup of index $\le 2$ that is isomorphic to one of the following three groups: $\{1\}$, $\mathbf{Z}$ and $\mathbf{R}$. Hence for $G$ totally disconnected, this again implies discrete.

For small-dimensional spheres the Hilbert-Smith conjecture is known to hold:

  • for the 1-sphere it's an exercise;
  • for the 2-sphere it's done in Montgomery-Zippin (although I think the proof has a gap, but anyway using facts from a 2006 survey of Kolev (MR link) in l'Ens. Math., it's fine)
  • for the 3-sphere it follows from the more solution in dimension 3 by J. Pardon.

So the answer (of the corrected question) is no for spheres of dimension $\le 3$, and no in general assuming the Hilbert-Smith conjecture.

It is maybe possible to prove the Hilbert-Smith conjecture in the very specific setting of such actions: they are bilipschitz actions for some (non-Riemannian) metric, they are minimal, etc. Probably the natural setting would be convergence groups, so the question becomes whether if $G$ is a totally disconnected locally compact group acts continuously and faithfully on a sphere so that the action on the set of distinct triples is proper and cocompact, is $G$ discrete?

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  • $\begingroup$ PS the Hilbert-Smith conjecture is known for Lipschitz actions on Riemannian manifolds (Repovš-Ščepin 1997 mathscinet.ams.org/mathscinet-getitem?mr=1464908). The action of a hyperbolic group on its boundary is Lipschitz for a given choice visual distance. This is not enough to conclude, because even if it's homeomorphic to a sphere, the distance is not in general not Lipschitz equivalent to a Riemannian distance (they can have distinct Hausdorff dimension). $\endgroup$
    – YCor
    Commented Feb 2, 2018 at 21:35
  • $\begingroup$ PPS beware that the above MR review by S. Antonyan of the Repovš-Ščepin paper claims that it's been generalized to the Hölder case (for actions on Riemannian manifolds) by Malešič (mathscinet.ams.org/mathscinet-getitem?mr=1480156) but the review of that paper says something weaker, namely bounds the Hölder exponent in terms of the dimension of the manifold. $\endgroup$
    – YCor
    Commented Feb 2, 2018 at 21:41
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    $\begingroup$ A relevant partial result regarding the Hilbert-Smith conjecture is given in M. Mj, Pattern rigidity and the Hilbert-Smith conjecture, Geom. Topol. 16 (2012), no. 2, 1205–1246. $\endgroup$
    – Uri Bader
    Commented Feb 3, 2018 at 19:33
  • $\begingroup$ @UriBader thanks! If I understand correctly, Theorem 2.24 of Mj's paper (msp.org/gt/2012/16-2/gt-v16-n2-p13-s.pdf, unrestricted access) implies the following result: For $G$ (totally disconnected locally compact, hyperbolic with $W(G)=1$), if the boundary $\partial G$ is homeomorphic to an $n$-sphere and admits a visual metric of Hausdorff dimension $<n+2$ [or equivalently has Ahlfors regular conformal dimension $<n+2$], then $G$ is discrete. $\endgroup$
    – YCor
    Commented Feb 4, 2018 at 2:16

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