Pacific Century CyberWorks has sought permission from the Office of the Telecommunications Authority (Ofta) to sell bundled services between its fixed-line and broadband divisions at a discount to their market price. The proposal, seen by analysts as a bid to save CyberWorks' falling share in both markets, is yet to receive approval from the regulator on concerns it could create an anti-competitive practice by the dominant operator. PCCW-HKT Telephone, a fixed-line unit which raised residential tariffs by 22.2 per cent to HK$120 early this year, is understood to be seeking a flexible pricing plan for its telecoms services in an attempt to secure a stable subscriber base. 'Why can i-Cable sell bundled services, but we can't?' asked a source at CyberWorks, who said informal talks with Ofta had been under way for months. CyberWorks deputy chairman Linus Cheung Wing-lam met information technology constituency legislator Sin Chung-kai to seek his support on the subject three months ago. 'The company is in a dilemma,' Mr Sin said. 'They will lose market share if they do not cut prices, but they will lose revenue if they do.' Analysts said CyberWorks hoped to regain a leading market share in the broadband business by offering bundled fixed-line services. It had 250,000 retail broadband subscribers as of June, or about 60 per cent of the market, compared with a 70 per cent market share at the beginning of the year. I-Cable Communications broadband subscribers doubled in the first half to 100,000. It has been reported that CyberWorks had applied to merge its loss-making broadband business with its most profitable fixed-line unit, mainly to create tax savings. Ofta director-general Anthony Wong Sik-kei declined to comment on CyberWorks' merger application, nor its bid to change its tariff structure, citing business confidentiality. He said an operator who wanted to raise or lower tariffs needed approval from Ofta, and he would make decisions on a case-by-case basis. 'Our primary concern is whether the change would reduce competition in the market,' he said. A CyberWorks spokesman declined to comment. Market anticipation of better earnings continued to push up the stock again. CyberWorks jumped 2.41 per cent yesterday to close at HK$2.12, despite a 3 per cent market correction in the blue-chip index. Weekly capital magazine Basis Points reported that CyberWorks had been asking investment bankers to pitch on a bond issue that could extend its overall debt maturity. The proposed bond issue, another attempt after a failure in July, was thought to be a difficult task in the volatile market. 'They could log in cheaper capital after two rounds of interest rate cuts,' an investment banker said. 'The question is whether there is the appetite in such an uncertain global market.'