The Cable & Wireless HKT move to raise household tariffs by 30 per cent may prompt other operators to take a serious look at offering residential services, according to a telecoms analyst. The plan involves raising household tariffs to $90 on September 1. Peter Milliken, DBS Securities assistant research manager said: 'At $90, they'll start to look at it because they'll break even at that price.' In about 18 months, residential lines bundled with high-speed broadband Internet services are likely to start being rolled out to consumers. 'The competitors will be happy to make a loss on fixed line in order to make a profit on broadband,' Mr Milliken said. City Telecom and HKNet had previously expressed an interest in operating wireless-fixed networks. Wharf Holdings and Hutchison Whampoa could build networks within their buildings by putting fixed-wireless stations at the bottom and aerials on the top. This would enable them to offer both basic phone and broadband services, Mr Milliken said. HKT had been subsidising its residential fixed line business with its international direct dial revenues for many years. This tactic backfired with the liberalisation of the call market in January, which left HKT with a fast-shrinking market share. While residential customers will bear the brunt of a price rise, its fixed-line business users will see no change in their basic charge. '[We] have no plans to increase those rates,' said Roy Wilson, HKT executive director. A rise is unlikely because the fixed line business market is more competitive, accounting for the bulk of Hong Kong's lucrative long distance call market. The Government granted HKT the freedom to set basic business tariffs at its own chosen price, but it has not raised them since 1997.