City Telecom (Hong Kong) sets the good example for FTTH operators

Thursday 24 February 2011 | 13:59 CET | Author: Tim Poulus | Market Commentary
City Telecom has grown its business into the number two player on the Hong Kong fixed market, behind incumbent PCCW. In 2010 the operator took 93 percent of net additions on the market. This takes the company closer to its goal announced in 2006, to be the market leader within ten years. City Telecom's strategy is centred on the roll-out of a new network (a combination of FTTB and FTTH), very high bandwidth (1 Gbps) and very low prices (around EUR 18.75 per month). The penetration of subscribers versus homes passed has reached 63 percent. The CFO, NiQ Lai, and CTO, Ivan Tam, recently outlined

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Categories: Fixed
Companies: City Telecom / PCCW
Countries: Hong Kong
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"Price declines are inevitable but need to be avoided as long as possible" is right. And the number of dollars being spent on lobbying to maintain existing policy in the U.S. is a good example of that. One can hardly blame the incumbents for wanting to cling to the status quo and their business model. This is only good business. But someone, like City Telecom, is going to dig in. Someone is going to invest in a new model. And then the incumbents will find themselves clinging to the past while disruptive innovators are capitalizing on empowering rather than encumbering to protect their model. It would be supercool if a large incumbent figured out how to disrupt their own business and take the next wave. I'm rooting for them.
Kim Romaner @ 6/3/2011 - 03:44

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