Hongkong Telecom is facing keen competition from a rival set to invest $8 billion in the market following the break-up of its monopoly. Without revealing the rival's name, Secretary for Economic Services Stephen Ip Shu-kwan said it had committed investment of $8 billion and the creation of 1,000 jobs. But provisional legislators questioned if the liberalisation would generate genuine competition and drive down tariffs as promised. Liberal Party leader Allen Lee Peng-fei was worried competitors would join hands to push up tariffs. Director-General of Telecommunications Anthony Wong Sik-kei said licences had provisions against anti-competition malpractices. Mr Ip urged lawmakers to accept the deal which, he insisted, had more gains than losses. The deal to buy out the Hongkong Telecom licence comprises $6.7 billion in cash compensation and $3.2 billion of gradual tariff increases for residential lines and savings in royalties.