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Cheung: focusing on change and innovation
01 July 1999
As price discounting intensifies for international telephony and mobile in Hong Kong, the former incumbent has been leveraging its advanced broadband network to derive revenues from multi-media services. In a recent rebranding exercise it was renamed Cable & Wireless HKT to reflect the operator's global ambitions. CEO Linus Cheung talks to Global Telecoms Business about this move and other developments.
The incumbent telco in Hong Kong, Hongkong Telecom, reached an
agreement with the government in January 1998 to relinquish its
monopoly on international direct dial calls on March 31 1998,
in return for a cash payment of HK$6.7 billion ($863 million).
In addition, competing international simple resale voices have
been permitted since January 1 1999. Full facilities-based
competition will be allowed as of January 1 2000.
The operator has tried to stay ahead of the competition,
building an advanced broadband network and focusing on
multi-media. Lloyd Fischer, a telecoms analyst at Salomon,
Smith & Barney, comments: "I think that they were one of
the first to realize that the markets were going to change and
that the emphasis would shift from high, monopoly margin
businesses to other areas. I don't think that many operators in
the region had thought that far ahead."
According to Fischer, the operator...
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