City Telecom raises broadband tariff 30pc

PUBLISHED : Friday, 09 February, 2007, 12:00am
UPDATED : Friday, 09 February, 2007, 12:00am


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City Telecom (Hong Kong), a fixed-line telecommunications operator, yesterday started raising the monthly tariff for its broadband internet service by 30 per cent to boost revenue, chairman Ricky Wong Wai-kay said.

Hong Kong Broadband Network, the company's fixed-line business arm, yesterday raised the monthly tariff for its broadband service with a transmission speed of 100 megabits per second to HK$298, up from HK$228 for a 24-month contract.

The move may help Mr Wong's firm boost revenue and cash flow amid market rumours that he may sell his 54 per cent stake in the company. But he dismissed the speculation.

'I have no intention to sell my interest in the company. I don't even think about it,' Mr Wong said.

City Telecom shares, which soared about 56 per cent last month on the market rumours, gained 0.74 per cent yesterday to close at HK$1.36.

The company recorded a net loss of HK$92 million for the year to August last year on amortisation of its fixed network capital investment and heavy finance costs.

China Telecom had HK$68 million in finance costs for the period relating to its issuance of US$125 million in convertible notes in January 2005.

The firm yesterday also unveiled two new packages with tariffs of HK$238 a month for a transmission speed of 50 megabits per second and HK$688 for 200 megabits. All new packages come with a two-year contract.

Hong Kong Broadband charges broadband service users HK$168 per month for a speed of 10 megabits per second.

'About 80 per cent of our 220,000 broadband users are choosing the package with 25 megabits per second and 100 megabits per second,' Mr Wong said.

PCCW, the city's largest broadband service provider, charges from HK$228 to HK$253 a month for six megabit and eight megabit broadband services. I-Cable Communication offers a monthly tariff of HK$129.