PCCW Says Broadband Wholesale Interconnect Tariff HK$170-175/User
Oct 15, 2001 - 12:08:11 HKT
Quamnet News Service
Pacific Century Cyberworks' (0008) management told Morgan Stanley Dean Witter that average wholesale rate for broadband interconnect is likely to range from HK$170 to HK$175 per subscriber, said the brokerage house.
The Telecommunications Authority gave its approval to PCCW's broadband wholesale interconnect tariff application on Oct. 12, the rate at which other carriers, including PCCW's own retail broadband services, could obtain access to PCCW's network.
According to PCCW chief financial officer David Prince, the authority will publish the tariff scheme in a few weeks' time, and it will involve rather complex charges for specific types of interconnection, said analysts Lina Choi, Hani Abuali and Kiet Truong in a research note to clients today, following an earlier discussion with Prince.
The HK$170-HK$175 subscription rate is 20 percent lower than the HK$220 Morgan Stanley had assumed for 2002, said the analysts. "A lower broadband interconnect rate, therefore, would lower the revenue for telecom service section but raise the profitability for PCCW's B2C business. On a net basis, we see limited impact on our consolidated forecasts."
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