City Telekom WKN 920504 - ein paar Infos

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City Telekom WKN 920504 - ein paar Infos Turbo

City Telekom WKN 920504 - ein paar Infos

City Telecom Tie-up with Cisco

Feb 01,2000 - 19:08:05 HKT

City Telecom (H.K.) (1137) chairman Mr Ricky Wong Wai-kai said the local market can accommodate 4 to 5 broadband network operators. He revealed that its subsidiary HK Broadband Network Services has subscribed equipment and services worth US$4 million from US-based Cisco System. The broadband network, developed by City Telecom and Cisco, will be open for Internet content providers later. It is expected that by the middle of this month, their network will cover 100 buildings in the territory and within a year, the coverage will be extended to 1,000 buildings.
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CTI (1137): full ahead with wireless fixed line network


Through its subsidiary HK Broadband Network Services (HKBN), City Telecom (CTI) is keen to provide cheaper broadband service. CTI chairman Ricky Wong said they will offer the service at a price 30% cheaper than that provided by Cable & Wireless Hong Kong Telecom (8, HKT), reported South China Morning Post.

Last month, the Office of Telecommunications Authority (OFTA) granted 5 wireless local fixed-telecommunication network services (FTNS) licenses. The 5 licensees are CTI, SmarTone (315), CCT (138), Henderson Investment (97) and PSINet. Among them, CTI will be the first to provide broadband service, which is expected to start in mid-February.

Compared with its competitors, CTI is the smallest one (PSI Net will only focus on commercial users) and can take quick action. In line with its aggressive strategy to gain subscribers, the company not only offers cheaper broadband services but also a package of telecommunications services. Just by paying a packaged price, CTI subscribers may enjoy fixed line services, long distance call services and unlimited broadband dial-up services.

CTI has a strong marketing strength. However, the company has to face the intrinsic problems of a wireless fixed-line network (the relevant technology was elaborated in another article). Academics think the Hong Kong climate will affect the transmission quality of this network. Moreover, as CTI so far has not allied with any property developers, we doubt if it could easily set up its wire network within buildings. This is the reason why those old fixed line network providers New T & T, New World Telcom and Hutchison only gained a small portion of the fixed line market. Some regarded this as a monopoly and asked OFTA to step in.

In fact, the critical point is technology. Hutchison and New World Telephone did not trust the fixed line network and did not apply for the FTNS license. They would rather bet on satellite transmission.

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