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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: StockJock-e who wrote (17)	3/23/2000 10:45:00 AM
From: Paul Berliner	Read Replies (2) \| Respond to of 32

Just dumped 2/3 of my stake at a loss. The press conf. was pretty lame: DJ HK City Telecom Says Plans Marketing Spending Spree 03/23/2000 Dow Jones Newswires (Copyright ¸ 2000 Dow Jones & Company, Inc.) HONG KONG (Dow Jones)--City Telecom (HK) Ltd. (H.CTY) said Thursday it plans to spend no less in its upcoming marketing campaign than it has pledged to the Hong Kong government to invest in its wireless broadband network. The new recipient of a wireless telecommunications license has vowed to spend HK$830 million within the next three years to develop its broadband network. "In the last three weeks alone, we have already spent HK$20 million on our last round of advertising," City Telecom Chairman Ricky Wong told reporters at a press conference. At the press gathering, City Telecom also officially announced a non-exclusive alliance with four leading U.S. technology companies. Financial details weren't revealed. Under the terms of the alliance, 3Com Corp. (COMS) will supply City Telecom with cable modems, while Cisco Systems Inc. (CSCO) will supply routers and other network infrastructure. Hewlett-Packard Co. (HWP) and Nortel Networks Corp. (NT) will provide other technical support to the broadband network. Wong said the company currently has approximately HK$900 million cash-on-hand, which will be sufficient for its network expansion in the current year. City Telecom's broadband network aims to cover about 3,500 commercial and residential buildings in Hong Kong in the next three years. FWIW, I was hoping that the four companies would be making a strategic investment in CTEL, but it just looks like CTEL hired them to expand its network. Such a deal is not news.