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Technology Stocks : CTEL - City Telecom of Hong Kong (PCCLF owns 38.4M shs). -- Ignore unavailable to you. Want to Upgrade?

To: michael who wrote (8)	3/1/2000 10:06:00 AM
From: Paul Berliner	Read Replies (1) \| Respond to of 32

CTEL Subsidiary Hong Kong Broadband Network Ltd. Issued 15% of Shares To the Largest Japanese International Telecom Carrier KDD Corporation HONG KONG, March 1 /PRNewswire/ -- City Telecom (H.K.) Ltd. (Nasdaq: CTEL - news) today announced that its subsidiary, Hong Kong Broadband Network Ltd. (HKBN), will issue 15% of its shares to KDD Corporation (KDD), the largest international telecom carrier in Japan. CTI has already obtained approval from OFTA on the captioned deal. KDD, a leading telecommunications company in Japan, provides a comprehensive range of voice, data and video products and services to both business customers and consumers with more than 45 years of operation. The KDD Group consists of 71 companies covering a wide variety of telecommunication related businesses such as engineering, facility hosting and submarine cable construction. It has 74 offices in Japan and 35 abroad providing customers with global support. Operating revenue and operating income of fiscal year ended March 1999 of the Group were US$3.6 billion and US$54 million respectively. KDD will subscribe 15% of the issued and enlarged issued share capital of HKBN, for a total subscription price of HK$225 million. ``We are delighted to have KDD as our new strategic partner to further strengthen our position in the Hong Kong's broadband market. This strategic move brings together the key strengths from our two organisations where KDD possesses the wireless technology know-how and CTI has comprehensive knowledge on the local telecom market. I am confident that the combined strengths will enable HKBN to secure a market-leading position in the market,' said Mr. Ricky Wong, chairman of CTI and HKBN. ``CTI's leading position in both the IDD and Internet market are reasons for our confidence in investing in HKBN. This investment marks a significant milestone on our expansion to Hong Kong telecom market,' said Mr. Takeo Miura, Senior Deputy Director of KDD. ``The expertise of KDD on wireless technology will make possible the aggressive network rollout of Hong Kong Broadband for a wireless broadband network in Hong Kong. KDD's involvement will also ensure the highest quality and technical standards,' added Mr. Wong. Leveraging on the expertise of KDD on wireless fixed line technology, Hong Kong Broadband and KDD will co-operate to seek opportunities to support the growth and development of Hong Kong Broadband by providing services and products including network access. Being awarded the Local Wireless FTNS license by Hong Kong SAR Government in January 2000, HKBN targets to official launch its broadband service soon and offer a complete range of broadband and multimedia services, including broadband Internet access, video on demand, video broadcast, video conference, home security and voice over IP. Besides, effective from 1 March 2000, HKBN will provide dial-up Internet services in place of CTI. Planning to invest at least HK$830 million over the next 3 years on establishment of the Broadband Network infrastructure, HKBN committed to cover 70% of total population within 3 years, serving both residential and commercial customers. Utilizing the latest wireless technology, HKBN will rollout its network to cover all 18 districts in Hong Kong at the same time, namely Central & Western Hong Kong Island, Wanchai, Eastern Hong Kong Island, Southern Hong Kong Island, Yau Tsim Mong, Shamshuipo, Kowloon City, Wong Tai Sin, Kwun Tong, Tsuen Wan, Tuen Mun, Yuen Long, Northern New Territories, Taipo, Sai Kung, Sha Tin, Kwai Tsing and Outlying Islands. HKBN expects to cover at least 1,480 buildings in 2000 and at least cover 3,552 buildings by 2003.