Hongkong Telecom will suffer when the access deficit charge (ADC) it receives from other network operators is scrapped, but losses will be minimal, analysts say.
By switching to a 'universal service charge' (USC) method of funding fixed-line services in uneconomic areas, Telecom could lose about $75 million a year, according to estimates.
The ADC - which until the end of last month had other operators pay Telecom 38 cents a minute per call through its international gateway - was scrapped by the Office of the Telecommunications Authority (Ofta) on July 31, to be replaced by the USC system.
The scheme will establish a fund into which international carriers will contribute for calls made from designated uneconomic areas.
Network providers will be reimbursed according to the cost of services they run in less populated areas of Hong Kong.
As the dominant operator in outlying areas, Telecom is expected to receive the lion's share of the USC fund.