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China-bound IDD calls plummet on fee increase

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IDD calls to the mainland from Hong Kong dived nearly 23 per cent after China Telecom imposed a sharp rise in interconnection fees last November.

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The outgoing call figure of 144.57 million minutes in November was a nine-month low, according to the Office of the Telecommunications Authority - down 22.8 per cent from October and 5.88 per cent year on year.

Mainland fixed-line giant China Telecom imposed a 17 US cents interconnection fee - a 7.75-fold increase - on Hong Kong's international direct dial operators in November on just one-week's notice.

Most operators passed on incremental rises to consumers effective November 1, but reverted to their former prices after a more favourable arrangement was reached. However, tariff uncertainty discouraged users in the first week of November.

Operators believe the effects did not last long.

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'It was soon over,' said Ricky Wong Wai-kay, the chairman of City Telecom, Hong Kong's No 2 IDD operator. 'We were already seeing a gradual rebound in December.'

Low-price IDD carriers such as Wharf T&T gained ground.

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