The Government's move to open the pay television and international telecoms markets to unlimited competition could prove a bonus for Hong Kong's two satellite operators.
Asia Satellite Holdings and APT Satellite are suffering as the regional economic turmoil has hit demand for transponders when there is a surplus of capacity.
Under the television and broadcast review published two weeks ago, the Government has proposed that once Hongkong Telecom's international monopoly ends any operator can begin offering services.
In the first year these must be on circuits leased from Hongkong Telecom but from 2000 operators can build and operate their own facilities.
This could offer satellite operators new business as service providers look for quick ways to establish routings for international services. Satellite connections can be established must faster than fibre-optic undersea cables.
'It think initially it [circuits] will be through satellite, with cable taking over in the longer term,' AsiaSat chief executive Peter Jackson said.