Mobile phone operator Peoples has denied receiving any offers to merge this year and says it is not involved in talks.
Industry consolidation has been expected in the run-up to the launch of third-generation (3G) mobile services but was difficult to achieve, chief executive Charles Henshaw said.
Peoples, Hong Kong's smallest mobile operator, did not apply for a licence in last month's 3G auction, increasing speculation it would merge with or be acquired by another firm.
'Last year, everybody talked about M&A [mergers and acquisitions], but nothing really came out. I think with the mature networks we see today, it is not easy to find synergies [among themselves],' Mr Henshaw said.
Mr Henshaw said he did not see any benefits in merging.
'It is all down to pure business. Merging two businesses is not like merging two bus companies, [where you repaint the vehicles] and it would work,' he said.
'Peoples is already a financially strong company that can survive [on its own].'
