Q Should existing PCCW subscribers receive a loyalty discount?
Wednesday's editorial on PCCW's fixed-line costs suggested consumers could switch to another operator if they were unhappy with current prices. I live in an old Chinese building in Wan Chai and I have been a loyal PCCW customer for more than eight years, simply because I do not have a choice. No other fixed-line operators provide a service into my building. I checked seven years ago when the telecoms market was first liberalised, and I checked again yesterday. I also called PCCW, who told me if I wanted to enjoy their reduced tariffs, I would have to sign a new contract. So much for rewarding loyalty. I am seriously considering getting rid of my fixed-line and relying on my mobile phone. At least there I have a choice.
S. Butler, Wan Chai
On the surface, one would say yes! However, if a company is not loyal to a customer, then the customer has the option to go to the competition provided the competition provides fixed-line service to your neighbourhood. We are somewhat lucky that we have some measure of competition in the telecommunications arena (no pun intended) here in Hong Kong. It was not always that way.
Don't forget that PCCW is the grandchild of Hong Kong Telephone (HKT), which enjoyed a monopoly for decades and gouged every penny out of its customers. I do not recall the exact quote but I recall Linus Cheung, formerly of HKT, boasting that $9 out of every $10 that HKT earned in those days was profit! What do you expect? This is Hong Kong!
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