PCCW forges links with Net providers
By KENNETH WONG
Tuesday 7 August 2001
Pacific Century CyberWorks, which sacked 340 people at its Internet operations last month, will link up with the online unit of Television Broadcasts and other content providers in an attempt to revive its Web business.
PCCW, Hong Kong's biggest phone company, has invited the media to a ceremony today to introduce "a range of partners that will provide content" to its now.com.hk site.
One of those partners is TVB.com, and Cheong Shin Keong, chief executive of the online arm of the city's dominant free-to-air broadcaster, would attend the ceremony, said a TVB executive who asked not to be named.
PCCW spokeswoman Joan Wagner declined to comment.
PCCW's now.com, or Network of the World, was the result of billionaire Richard Li's ambition to build a global broadband-entertainment network.
However, as losses mounted because of overestimated demand for broadband services, now.com began cutting staff in February, and closed its London office.
PCCW is now trying to buy content from established dot-coms and entertainment companies to cut costs, though those plans received a setback last week when it pulled out of talks with media tycoon Jimmy Lai's Next Media.
A deal with Next would have given PCCW access to content from a magazine that sells 150,000 copies a week.
"Buying content no doubt will give viewers wider program choice," said one analyst. "But more importantly, CyberWorks needs to make sure there are enough broadband users."
Government statistics show less than a fifth of Hong Kong's 2.7 million registered Internet subscribers have broadband connections, which are more than 20 times faster than regular dial-up services. One of the reasons PCCW cited when it closed its Now office in London was that demand for broadband services outside Asia "has lagged forecasts".
PCCW cut spending on Web services this year to $US190 million ($A368 million) from $US200 million.
-BLOOMBERG
This story was found at: theage.com.au |
