Telecom cuts international dialling rates
HONGKONG Telecom yesterday announced its plan to ease international direct dialling (IDD) rates to popular destinations by more than 10 per cent.
The move, which has been approved by the Office of the Telecommunications Authority, means the average decrease in IDD rates for the coming year is likely to be about two per cent.
The reductions will be in line with agreements reached with the Government two years ago to reduce international prices by 12 per cent over three years.
The 10 per cent reduction is targeted at lines to popular business and emigration destinations.
The cost of calling Australia, Canada, Britain and the United States will be reduced by 11.1, 11.2, 10.2 and 12.2 per cent respectively.
Linus Cheung, Hongkong Telecom's chief executive, said the move would help to maintain the territory's competitiveness as the leading regional telecoms hub for multinational companies.
''As a result of the new tariff structure, Hong Kong will continue to enjoy some of the most competitive international rates in the world,'' he said.
''Inflation, on average, has been about eight per cent for the past year. By keeping the majority of IDD rates the same for the coming year, prices - in real terms - will fall.'' Last year, policy-makers campaigned to reduce international charges by announcing interconnection rules designed to give potential second network rivals flexibility to undercut Hongkong Telecom.
