KG Telecom is due to become only the second company in the world to offer General Packet Radio Service, which allows fast Internet access from mobile phones or wireless laptop computers, according to TCC Hong Kong Cement Holdings.
Chairman Leslie Koo Cheng-yun said unlisted KG Telecom, in which TCC is to acquire a 10 per cent stake from parent Taiwan Cement, would transform into a wireless broadband multimedia platform provider by the end of the year.
He rejected suggestions that the acquisition was a move to lift the price of TCC shares.
TCC gained 17.1 per cent to close at HK$4.45 yesterday on turnover of HK$1.28 billion, the market's second largest after Pacific Century CyberWorks.
'KG Telecom is not merely a concept,' Mr Koo said. 'It has very concrete and realistic business operations.' He said KG Telecom's profit of NT$428.82 million (about HK$108.1 million) for the first six months of last year had been large enough to offset its losses in previous years, and enabled the firm to fulfil Taiwanese listing criteria.
Mr Koo said KG Telecom and its sister companies would seek to establish 12 cable television networks by the end of the year, expand its high-speed fibre-optic network to cover Taiwan by July, and obtain a satellite communications licence.