SmarTone Telecommunications has confirmed it is quitting the Internet dial-up business, but says it will continue to offer broadband services.
The move is part of a restructuring that could also include dropping the youth mobile-phone brand Extra to improve cost efficiency.
A SmarTone spokeswoman said the company had notified its dial-up Internet users the service would be terminated from the beginning of next month, and that it had arranged for them to be transferred to HKNet.
She said the broadband service was not affected.
''Our core business is mobile,'' the spokeswoman said. SmarTone began scaling down its Internet investment after Douglas Li took over as chief executive in July last year.
The Internet workforce was reduced and merged with the main mobile division.
Mr Li indicated more than once in the past year that SmarTone might merge or close down the loss-making operation.
