HUTCHISON Paging is looking to expand its second generation cordless telephone (CT2) network into Guangdong province later this year.
CT2 users now are not allowed to use their portable telephones in China.
Managing director Dennis Lui said talks had been under way with Shenda, a wholly owned subsidiary of Shenzhen's state-owned telephone corporation, to enable CT2 handsets to be used in the city.
Hutchison was also looking to set up operating agreements in other Guangdong cities this year, starting perhaps with Guangzhou, he said.
The company believes it will receive strong interest from busy Hong Kong businessmen frustrated by the limited fixed telephone facilities they find when in southern China.
CT2 users wanting to use their telephones in China would have to register with Hutchison to enable their handsets to operate across the border. Mr Lui said a modest registration charge would be levied.
Users calling Hong Kong from China would be charged international direct dialling rates.