EXHIBIT 1
SUMMARY OF TELECOMMUNICATIONS
COMPETITION IN HONG KONG
Severe competition
Moderate or indirect competition
Little or no competition
MAIN COMPETITORS
EXTENT OF
COMPETITION
TYPE OF SERVICE
NATURE OF COMPETITION
MOBILE
Paging
Cellular telephone
DATA
p
Direct competition
More than 10 competitors; top 3 control 80%+ market share Compete on package (equipment and service), price, and product features/services
Direct competition
3 competitors licensed; no company has greater than 50% market share
- Compete on service coverage and product image
Prices and features similar for major products
- Indirect competition from 3 types of competitors
Public fixed-link data network- "Datapak"
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·
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Two specialized networks (a mobile network and a small fixed-link network with value-added services attached as a package – iNET) Equipment (e.g., dial-up modem) plus leased line from Hong Kong Telephone
Each type of competitors addresses needs of different customers
For public network customers; both sender and receiver of data subscribe to Datapak (e.g., point-of-sale network between stores and headquarters; database service that subscribe to the same public network)
·
Specialized network customers have special requirements like mobile, or require access to value-added services more accessible on the specialized network
Equipment plus leased line customers need to reach value-added services or others that do not subscribe to a public data network
Source: Literature; Hong Kong Telecom
Hutchison
- Star ABC
Hutchison
- HKT CSL
Pacific Link
Public data network: Hong Kong Telephone Specialized networks: Hutchison
– Equipment vendors: all suppliers of modems
and multiplexers
McKinsey&Company, Inc.
FIDENTIAL