Telstra said it has no plans to sell Hong Kong-based CSL New World Mobility, after rumours that Australia's biggest telephone company would retreat from the city's overcrowded mobile market. Telstra has long been expected to sell its stake in CSL New World as market watchers said the Hong Kong business barely fit into its strategy. However, CSL New World chief executive Tarek Robbiati said its 75 per cent stake was not up for sale. 'CSL New World is an important asset to Telstra,' Mr Robbiati said. The company became Hong Kong's largest mobile operator after CSL merged with New World Development's telecommunications unit in 2005. As a part of the merger agreement, CSL New World must list by June 2009, but Mr Robbiati said the firm had no immediate plans to do so. Last summer, Telstra appointed Mr Robbiati, formerly Telstra's deputy chief financial officer, to head CSL New World tasked with improving profitability. 'Financial figures told me that CSL New World should have further growth if resources are better allocated to the businesses with growth,' Mr Robbiati said. 'We are the largest and most profitable mobile operator in Hong Kong with revenue 50 per cent more than the second largest players, and our earnings before interest, tax, depreciation and amortisation (ebitda) are 100 per cent more that the second-ranked player,' he said. According to Telstra's financial report, CSL New World's ebitda rose 5.9 per cent to HK$398 million for the second half last year, with revenue rising 6.3 per cent to HK$3.28 billion. Mr Robbiati said CSL New World, which offers services under three brands - 1010, One2Free and New World Mobility - had more than 2.6 million subscribers. Average revenue per user reached HK$280 per month, Hong Kong's highest. The industry average was HK$180, he said. CSL competes with PCCW, SmarTone-Vodafone Communications, Hutchison Telecom and China Mobile Peoples. 'PCCW has been gaining mobile market share. It is still relatively low at 10 per cent, but they should be able to continue making steady gains,' CLSA said in a research report on PCCW. To boost revenue, CSL New World is expanding data services such as internet browsing, mobile email and instant message services. 'Our non-short message mobile data revenue accounted for 38 per cent of our total revenue, which is one of the highest in the world,' Mr Robbiati said.