The launch of 3G services by Hong Kong's four licence-holders will provide a stimulus for consolidation in the industry, according to Sunday Communications.
'It was sensible five years ago and it was sensible three years ago. It's got to happen now,' said Sunday group managing director Bruce Hicks. 'Everybody has been talking to everybody else in the last year ... what's different now is the realisation that our industries are substantially changing and the technologies are going to force consolidation.'
Sunday, which is due to launch its 3G service in the spring, has been in mergers and acquisitions discussions for a year that could make it the territory's largest operator by December next year.
'There's going to be mergers and acquisitions happening for sure. There can only be four operators at the end of the day,' said Sunday co-chairman Richard Siemens.
'A year from today you will see that we are a much bigger and more interesting company than we are today.'
The company believes there will be no room in the market for operators without 3G once the three remaining licence-holders roll out services in the coming months. 'It doesn't make any sense to consolidate unless you have 3G. Nobody wants to do a roaming deal with a company that doesn't have a 3G licence,' said Mr Siemens.
