n the "Executive Decision" segment, Cramer sat down with Niq Lai, CFO of City Telecom (CTEL), a regional telco provider serving Hong Kong, and a company with a 4.2% dividend yield.
Lai said City Telecom currently has an end-to-end fiber optic network in Hong Kong that offers speeds of up to 100 megabits per second to its customers for the equivalent of $13 a month. The company also offers TV service for 150,000 customers and has applied to offer an advertising supported free TV service that could reach 1.6 million households.
When asked how the company can be so successful while U.S. carriers struggle, Lai said that the key is density. In Hong Kong, he said, there are 16,000 people per square mile, compared to just 80 in the U.S. Lai said there are also utility access laws in Hong Kong that grant carriers access to buildings far easier than in the U.S.
When asked about the company's dividend, Lai noted that company management owns 60% of City Telecom, which means they love dividends. He said that by 2011, the company will have completed its build-out, and will be able to harvest immense cash flows.
Cramer said City Telecom is a great company with a bright future.
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