The sudden move by PCCW to slash its rates for fixed-line telephone services has sparked a savage price war and highlighted the refreshingly fierce competition that characterises Hong Kong's telecommunications sector.
But not all consumers are happy. Those who are in a position to take advantage of the new cut-price deals are certainly smiling. They will, in the case of PCCW, enjoy rates that have been reduced by as much as 39 per cent.
The offer is, however, not available to all of the heavyweight carrier's customers. Only new clients who have been subscribing to a rival operator's service for more than six months can benefit.
This has prompted complaints from existing PCCW customers who are unable to sign up for the new deals and are stuck with the old - much higher - prices. They argue that this is poor reward for their loyalty to the company.
The manner in which PCCW and other telephone companies have sought to lure customers away from rival companies by offering them special rates raises issues of equity. No one likes to think that their friends or neighbours are receiving a much better deal from the same service provider.
But this is a by-product of changes in the telecommunications sector over the past 10 years that have greatly benefited the consumer. Most people are now able to choose from several different providers. Competition is intense. As a result, Hong Kong's prices for basic telephone and internet services are much cheaper than those in most other places.
Deregulation began in 1995, allowing new players to enter the sector. So PCCW's grip on the fixed-line residential market has been gradually slipping. It was down to 73 per cent at the end of 2003 and fell to 69 per cent in the first half of last year.
