HK Henderson Cyber To Halt Local Wireless FTNS Operations
November 26, 2001
Dow Jones Newswires
HONG KONG -- Henderson Cyber Ltd. (H.HCY) will discontinue its wireless broadband operations amid intensifying competition in a shrinking market, a company source told Dow Jones Newswires Monday.
The company is the technology flagship of developer Henderson Land Development Ltd. (H.HLD).
Henderson Cyber's move comes as a stark warning to the other four wireless fixed telecommunications network services (FTNS) operators in Hong Kong, just a day before the government closes its consultation on the full liberalization of the local wireline and wireless broadband market.
The broadband services market in Hong Kong is now dominated by the two fix-line network operators, Pacific Century CyberWorks Ltd. (H.PCW) and i-Cable Communications Ltd. (H.ICB). The largest wireless FTNS operator, City Telecom (H.K.) Ltd.'s (H.CTY) Hong Kong Broadband Ltd. unit, has about 30,000 subscribers but is embroiled in a cutthroat price war with i-Cable.
The Office of the Telecommunications Authority (OFTA) said last month it plans to open the local wireless and wireline broadband market for full competition. With no preset limit on the number of operators, the OFTA expects to grant new licenses in January 2003.
Henderson Cyber Chief Executive Douglas Moore declined to comment on the issue.
"If we are to make any announcement we have to announce through proper channels such as the GEM Web site," Moore said.
The company said last month after its annual general meeting that it may pull out of the market if the government issues more licenses without requiring new operators to make any minimum investment commitment.
In the fiscal year ended June 30, Henderson Cyber invested over HK$50 million in Eastar, but only generated less than HK$1 million from the business.
-By Chan Ka Sing, Dow Jones Newswires; 852-2832-2342, ks.chan@dowjones.com
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