Mainboard-listed telecommunications services provider China Motion Telecom International has won a licence to enter Hong Kong's already crowded fixed-line market. Approval by the Office of the Telecommunications Authority, which came on Thursday, brings the number of fixed-line licences to seven after the sector was fully deregulated this month. China Motion was the first among four applicants to be given the green light to offer fixed-line services. The other three applicants are Cheung Kong (Holdings) and CLP Holdings' joint venture Powercom Hong Kong Network, Welcome Engineering and MTR Corp unit Trax Comm. China Motion won the first licence to be granted by the regulator after full liberalisation this month allowed new players to enter the fray and compete with dominant carrier PCCW and the three other incumbents. Two broadband operators - City Telecom subsidiary Hong Kong Broadband and Henderson Cyber's unit Eastar Technology - have upgraded their wireless fixed-line licences to full fixed-line licences since deregulation. China Motion chairman Tony Hau Tung-ying said the company planned to launch services targeting mainly commercial and residential users with heavy cross-border traffic. It plans a mid-year launch. Mr Hau said the company's fixed-line business would have a similar model to its mobile virtual network operation, which mainly leases other fixed-line carriers' network capacities to provide value-added services. He said China Motion did not plan to build an extensive network of its own, although he would not rule out the possibility of building networks in certain areas. China Motion chief operating officer Li Bin said the company was still fine-tuning its business model and therefore was unable to estimate the investment involved, but the net cash on hand of about HK$100 million should be enough to fund its fixed-line business plan.