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Synergies and Dynamics of TelecomSynergies and Dynamics of Telecommunications in Hong Kong - A Case munications in Hong Kong - A Case

Study ofStudy of City Telecom (H.K.) Ltd.City Telecom (H.K.) Ltd.

香港電訊市場的發展匯力及動力城市電訊 (香港 )有限公司個案探研

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Development of Telecommunications Development of Telecommunications in Hong Kong - The Two Approaches in Hong Kong - The Two Approaches

• Approach One (“Infrastructure Approach”)

•方案一(「基建方案」)

Heavy Investment in Infrastructure Development

Customer Acquisition

Return Gernation

重點投資基建發展

積極吸納客戶

獲得回報

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Development of Telecommunications Development of Telecommunications in Hong Kong - The Two Approaches in Hong Kong - The Two Approaches

• Approach Two (“Marketing Approach”)

•方案二(「市場推廣方案」)

Implementation of marketing campaign to capture customer base, while service provided by resell ca

pacity

Customer Acquisition成功吸納客戶

Return Generation獲得回報

轉售其他網絡商的服務，透過市場推廣吸納客戶 Recurrent

Marketing Campaigns陸續推出市場推廣計劃

Customer Base

Enlargement擴大客戶基礎

Return Generation獲得回報

Infrastructure Investment基建投資

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Details of Case StudyDetails of Case Study• Example of “Marketing Approach” 「市場推廣方案」的範例• Elaborated by 引申如下 :

– IDD service offered by City Telecom (H.K.) Limited 城市電訊(香港 )有限公司提供長途電話服務

– Fixed Network Services offered by Hong Kong Broadba

nd Network Limited, a subsidiary of City Telecom (H.K.)

Limited

城市電訊旗下附屬公司，香港寬頻網絡有限公司提供固網服務

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Case Study : City Telecom (H.K.) Ltd.Case Study : City Telecom (H.K.) Ltd.Provision of IDD ServiceProvision of IDD Service

• 1992 : IDD service supported by “Call-back” technology with endorsement by the Government on legitimate basis, which was at significantly lower rates to increase number of customers and traffic

• 1992 ：透過「回撥」技術在獲得政府批准的合法根基下提供長途電話服務，以低價增加客戶及通訊量

• 1999 : Granted the license of International Simple Resale(ISR) voice service in Hong Kong, offered IDD service with resell capacity from “IPLC” of HKT

• 1999 : 獲發國際簡單分銷話音服務牌照，以轉售香港電訊的 「國際專線」容量提供長途電話服務

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Case Study : City Telecom (H.K.) Ltd.Case Study : City Telecom (H.K.) Ltd.Provision of IDD ServiceProvision of IDD Service

• 1999 :While profit began to surge, we invested in infrastructure : the Japan-US submarine Cable and satellite stations

• 1999 : 由於盈利上升，轉向投資基建：日美海纜以及衛星站

• This helped to reduce cost of IDD service provision and enhanced our profitability

•有助減低長途電話服務成本及加強盈利能力• 2000 : We further invested in infrastructure : the Asia Pacific Cable Network 2 (APCN2)

• 2002 : 進一步投資基建：太平洋海纜（ APCN2)

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Case Study : City Telecom (H.K.) Ltd.Case Study : City Telecom (H.K.) Ltd.Provision of IDD ServiceProvision of IDD Service• CTI is now a full-licensed operator :

•城市電訊現為一全面持牌商：–Cable-based External Fixed Telecom Network Service License

–電纜對外固網服務牌照–Satellite-based External Fixed Telecom Network Service License

–衛星對外固網服務牌照• Market share of IDD : 24%

•長途電話服務市場佔有率： 24%

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Case Study : Case Study : Hong Kong Broadband Network Ltd.Hong Kong Broadband Network Ltd.

• 1998 : Launched 56K dialup Internet Access Service under the name of “CTInets” for branding building, customer capturing and revenue generation

• 1998 : 以 CTInets 推出 56K撥號上網服務，建立品牌形象、吸納客戶並帶來營業額

• 1999 : Proposed the HKSAR Government to allow the operation of fixed telecom network service by wireless LMDS technology, in which the network infrastructure can be set up at lower cost

• 1999 : 由於無線技術可減低網絡基建成本，建議政府容許以無線本地多點配送系統技術提供固網服務

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Case Study : Case Study : Hong Kong Broadband Network Ltd.Hong Kong Broadband Network Ltd.

• 2000 : Issued the Wireless Fixed Telecom Network(FTNS) License by the Office of the Telecommunications Authority, and launched broadband service

• 2000 : 獲香港電訊管理局發出無線固網牌照並推出寬頻互聯網服務

–Speedy customer acquisition : 150,000 residential and 6,000 commercial customers–迅速吸納客戶：擁有 150,000 名住宅及 6,000 名商業客戶–Achieved positive results at EBITDA (Earning before interest, taxation, depreciation and amortization) level–扣除利息、稅項、折舊及攤銷前盈利 (EBITDA) 已達正數水平

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Case Study : Case Study : Hong Kong Broadband Network Ltd.Hong Kong Broadband Network Ltd.

• 2002 : Further investment in network upgrade fuelled by positive cash flow, we expanded the variety of fixed network service by launching voice service to sustain revenue growth

• 2002 : 正數的現金收入令我們可進一步投資網絡提升，開拓固網服務種類並令營業額持續增長 -推出市話服務

– Possessed 50,000 customers 擁有 50,000 名客戶• Upgrade from wireless FTNS license to Wireline-based FTNS license

•由無線固網牌照提升為有線固網牌照• Seeking to develop more diversified service on existing network platform : pay-TV carrier service

•透過同一網絡平台研究發展多元化服務：收費電視服務

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Case Study : Case Study : Hong Kong Broadband Network Ltd.Hong Kong Broadband Network Ltd.• Established the world’s largest Metro Ethernet network

•建構全球最具規模的城域以太網網絡• Successfully migrated from a reseller of 56K dialup Internet access service to become a fixed network operator

•成功由一 56K 撥號上網服務分銷商進展成為固網營辦商

• Network coverage - 1,100,000 homepass•網絡覆蓋一百一十萬戶

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Our In-building Blockwiring SystemOur In-building Blockwiring System

FDF at Metre Room

IP Box at Floor

Horizontal wiring via existing

conduit to corridor

Junction Box at Corridor

Cables of the dominant operator (yellow)

HKBN’s cable (grey)

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Hong Kong - A Place with Fair Hong Kong - A Place with Fair and Liberal Telecommunications and Liberal Telecommunications Market to Meet the Challenge of Market to Meet the Challenge of

the Information Agethe Information Age

香港 ─ 擁有公平開放的電訊市場， 迎接資訊時代的挑戰