PSINet uses satellites to beat Net congestion

Internet service provider PSINet Hong Kong will help relieve telecommunications bottlenecks between the SAR and overseas by bolstering its on-line traffic capacity with satellite technology.

President William Kwan said the local unit of the United States listed firm aimed to increase its external telecoms capacity to 45 megabits a second in eight months.

The plan was made possible by the company securing an external fixed-network telecoms service licence last month.

PSINet also plans to launch a high-speed Internet service using wireless technology by the third quarter, with the aim of signing up 15 per cent of its target market of 195,000 business customers and one million residential users by the end of the year.

Mr Kwan said he was not worried about a possible price war despite rival Cable & Wireless HKT slashing prices for business clients using high-speed access.

'Price is not the most important element in the total solution,' Mr Kwan said.