ANALYSTS say a redevelopment of Telecom House in Wan Chai would not substantially increase revenue. Telecom has just announced it is considering redeveloping the property, less than two months after its controversial move to slash 16 per cent of its staff over three years. Credit Lyonnais analyst Benjamin Cheng said while redeveloping the building would not mean any more business opportunities, it was still a good form of investment for the company. 'Even though the market is slow, it would not matter because the company could keep the building for its own use,' Mr Cheng said. Another analyst said redevelopment would increase the property's resale and rental value. Hongkong Telecom's redevelopment plan comes in the wake of an emerging trend for public utility companies to move into property development projects. China Light and Power, in collaboration with Cheung Kong (Holdings), has converted its Hok Un Street power station into a large-scale residential estate. China Motor Bus and Kowloon Motor Bus companies are embroiled in controversies over their moves to redevelop their Aberdeen and Kwun Tong depots. A Hongkong Telecom spokesman said that any redevelopment plans for the Wan Chai property were because the site had not been fully utilised. The company was also considering redeveloping its Fortress Hill switchboard building. Facilities manager Jacob Lee said Telecom's resources were limited and it had to utilise whatever it had. 'We want to build as high as possible,' he said, acknowledging that the Wan Chai building was on a prime site. The existing plot ratio for the building is 1:13 but Mr Lee indicated that Telecom intended to have the ratio increased. A total of 50 per cent of the building is office space and the rest is used for telecommunications equipment. Mr Lee said the functions of the building would be retained should it be redeveloped. He said the building was more than 20 years old and it was time to upgrade the facilities in view of the advance in telecommunications technology. Mr Lee said: 'We are already very busy with telecommunications - property is not a priority.'