Pager price drop hits CM Telecom

CM Telecom International says the profit margin on sales of its Chinese-language pager in the mainland is under pressure, with the unit price dropping by more than half.

Chairman and managing director Tony Hau Tung-ying said the unit price had fallen from US$100 to $30.

He said the decrease had generated stronger demand but not enough to compensate for the squeezed profit margin.

The company, listed last October, provides telecommunications-related services, equipment and products to network operators in the mainland.

Mr Hau said in a competitive environment, CM Telecom had been able to maintain its 40,000 pager subscribers in Hong Kong.