New World Telephone to Spend $13 Mln on Cisco Network Equipment
By Kenneth Wong
Hong Kong, March 13 (Bloomberg) -- New World Telephone Ltd., the Hong Kong fixed-line telephone unit of New World Development Co., has agreed to buy HK$100 million ($13 million) worth of network equipment from Cisco Systems Inc. for a new broadband Internet service for its corporate customers.
The equipment will allow New World to offer Internet access at speeds almost seven times faster than standard leased lines, said Paul Ho, the company's director of marketing.
New World has to offer a broadband service to remain competitive. Hutchison Global Crossing Ltd., another fixed-line operator in Hong Kong, launched a similar service in August targeting mainly residential customers. Pacific Century CyberWorks Ltd. also offers broadband service through its PCCW-HKT unit, Hong Kong's biggest phone company.
Ho said New World aims to sign up 4,500 subscribers in the next 12 months for its new service, or 15 percent of the Hong Kong corporate market, in. He declined to reveal the company's current market share.
Cisco, the world's biggest supplier of network equipment, said Friday it would cut as many as 5,000 full-time jobs amid a spending slowdown by its customers.
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