Power utility CLP Holdings has joined forces with China Netcom, China's fifth telecommunications carrier, to develop its Hong Kong-China Internet and telephone services, according to sources.
In its latest attempt to diversify into the telecoms sector from its core activity of electricity supply, CLP through CLP Telecommunications (CLP TeleCom) is to roll out the services, branded China Link, once the Government gives the green light.
CLP TeleCom managing director Peter Heavyside said yesterday the company had signed a legally binding agreement with a mainland telecoms operator, but he would not identify it.
'We signed a legally binding agreement last October,' he said. 'However, we prefer not to name it until securing a licence.'
After a year's discussions, CLP TeleCom is still negotiating with the Economic Services Bureau over the use of regulated assets for non-power purposes.
The approval is a prerequisite of the roll-out as CLP's power lines are governed by the Scheme of Control agreement.
Nevertheless, CLP TeleCom has secured a letter of intent from the Office of the Telecommunications Authority, which allows it to wrap fibre-optic cable around overhead power lines between Sha Tin and Lowu.
