Analysts are divided on whether the purchase will pay off in the long term
The 13 wireless broadband licences PCCW won through auction in Britain gives it a slice of the region's high-frequency, 3.4-gigahertz spectrum and will enable it to deliver voice, video and other broadband services.
PCCW spent GBP6.3 million (HK$82.41 million) for the licences - a fraction of the billions other operators paid for broadband mobile-phone licences in Europe under the third-generation (3G) standard.
However, at this stage, the licences are merely an option on growth. It will require many times more investment in base stations, switching equipment and advertising to build brand recognition and turn an untested technology into a viable business. Even then, there is no guarantee it will work.
For that reason, analysts are divided on PCCW's prospects. JP Morgan analyst Richard Wu is a sceptic.
'We believe it will be difficult for licence winners to make money,' he said in a note published before the licences were awarded.
The problems include a highly competitive broadband market, high system start-up costs and the lack of success so far among rivals.