CyberWorks' Richard Li on Sales Plans, DSL Technology: Comment
By Cathy Chan
Urumqi, China, May 28 (Bloomberg) -- Richard Li, chairman of Pacific Century CyberWorks Ltd., comments on the business of Hong Kong's largest phone company during a government-led business trip to Western China.
CyberWorks plans to boost sales by tying telecommunications with services such software consulting, system integration, data hosting and connectivity.
``We will sell them as a whole package and this whole value package would be cheaper than the companies doing it internally and separately.''
``So far, in financial services areas, we service a large part of system integration and connectivity for the two largest banks in Hong Kong. We are very strong in telecom companies. We can tell you in China we're serving one of the three major telecom operators for them internally.''
In the travel industry, ``we've over 80 percent of our market share on system integration on this sort of bundling of service.''
``We have too look at client list to see what they need and how to enhance our capacity, and that may have to come from mergers and acquisitions'' of information technology service companies. ``We are always in search of good co-parties.''
On DSL (digital subscriber line) technology:
``You'll find this quite shocking. I don't believe in just relying on DSL. It's just dissolution. I'm bold enough to say: I do not believe in DSL alone. I believe there is some limitation on technology and I believe that the cost compared with the volume doesn't' come down enough to be worthwhile for telco operators like us to rely solely on it in the long-term. Because if you drive volume, we hope the price would come down. With DSL, the price didn't come down enough.
``If we provide new services, it'd be on a separate business plan, but we don't believe the overall capital expenditures will increase dramatically.''
On EBITDA growth:
``Obviously, in the short term, is to look at cost. But we would not cut costs so much that it would hurt sales. On the longer term, it has to be geographical, but I wouldn't' expect that to happen in the short and medium-term.
``The company has to be much more customer-oriented, rather than operationally-oriented. That is a reform, a change of culture.''
On business-to-consumer services:
``Globally, the attitude toward business-to-consumer Internet and the market has changed drastically. We're lucky enough that before we launched, the world already changed dramatically.''
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