PCCW Phone Charge Hikes to Boost Revenue by 77 Million Dollars a Year

Published December 22nd, 2000 - 02:00 GMT

Pacific Century CyberWorks Ltd (PCCW) said Friday that telephone charge increases from January would boost revenue by 600 million Hong Kong dollars (77 million US) a year.  

Speaking at a news conference, Tom Chan, director of marketing and products at Hong Kong's dominant telecomm carrier, said the new charges would take effect from January 22. 

Chan said the decision to raise the monthly charges for both residential and business lines had nothing to do with PCCW's debt position. 

"They are two separate issues since the agreement was made with the government in 1998 and PCCW acquired Hongkong Telecom last year." 

The company said in that residential charges would be increased to 110 dollars a month from 90 dollars while business telephone charges would be increased to 128.80 dollars from 108.80 dollars. 

Under a 1998 agreement with the government, PCCW was allowed to adjust its local fixed line rental charges over a three-year period to 110 dollars a month. 

Chan said the deregulation of international markets was eliminating subsidization of local services by international services. 

After the tariff revision, Hong Kong's fixed line charges would still be among the lowest in the world, he said. 

PCCW said last month it had obtained refinancing of 4.7 billion US dollars in debt, the remaining portion of a 12 billion dollar bridging loan agreed in April to finance its purchase of Cable and Wireless Hong Kong Telecom -- HONG KONG (AFP)  

 

 

© 2000 Al Bawaba (www.albawaba.com)

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