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SCMP Reporter

HONGKONG Telecom has reached a deal with Beijing over a plan to build a fibre-optic link from the territory to Beijing, according to the firm's chief executive.

  But the firm insisted on keeping most details of its much-vaunted China deals under wraps last night and said some negotiations were continuing.

  Linus Cheung Wai-lim broke the news yesterday that negotiations announced by Lord Young, Cable & Wireless' chairman, to provide a mobile phone service in Beijing and a fibre-optic link between Hong Kong and Beijing had now borne some fruit.

   He said work would start on the project soon.

  Mr Cheung said a deal over the fibre-optic link was signed 'a couple of months ago'. Aside from repeating that the link should be completed by the end of next year, there were no further details.

   Mr Cheung refused to say how much Hongkong Telecom was to invest in the project. He refused to say how long it would take for the firm to recoup its investment. He refused to say what capacity the link would have. He said those details would have to wait until all contract details were finalised.

    Mr Cheung denied that a second deal, to provide mobile phone services in Beijing, had fallen apart. 'Negotiations are still continuing,' he said.

   'We want to make sure that it is beneficial to both Hong Kong and China.'   Gossip has surrounded the deals since Lord Young called a press conference late last year and said a preliminary deal had been made.



HK Telecom strikes Beijing deal