PCCW Ltd. considering a return to mobile communications in Hong Kong
PCCW Ltd. is one of the dominating fixed line telephony companies in Hong Kong. However, they do not currently have a presence in the mobile phone business in the country. However, they are now considering making a return in this branch of telecom by offering to buy one of the smaller mobile companies in the country Sunday Communications Ltd.
Hong Kong has six cellular operators, which face intense competition from each other. Sunday Communications is the smallest of the lot and would be easier to grab than any other company by PCCW. They already had a decent user base of 660,000 subscribers at the end of 2004 and their market value stands at USD 203 million.
PCCW has offered USD 200 million to take over the company to come back in the market they left way back in 2002. Sunday Communication is owned by companies like Distacom Communications Ltd., USI Holdings Ltd., and Chinese telecoms gear maker Huawei Technologies and they are having a hard time in the market as the profits are falling massively. They are also expected to make losses this current financial year and it would be hard for them to recover easily.
The other big players in the mobile sector in Hong Kong are Hutchison Telecommunications International Ltd., Telstra’s CSL, and SmarTone Telecommunications.