Thursday, June 2, 2011

Hong Kong Broadband Offers 1 Gbps Triple Play for US$20/Month

Hong Kong Broadband Network launched an "Incredible Triple-Play" service consisting of 1 Gbps broadband, voice, and pay-TV for US$20/month (HK$158) with 24-month contract.

Hong Kong Broadband Network, which currently has over 1,110,000 subscriptions for broadband, local telephony and IPTV, said it is able to cut price this low because it is benefitting from rapidly increasing economies of scale as the market in Hong Kong embraces its 1 Gbps service. With costs falling, the company said it is simply passing on the savings to its customers and make money for its shareholders.

Hong Kong Broadband Network calculates its cost per home past is approximately US$200, amongst the lowest in the world. The company claims its Return on Equity has risen from 3.2% in FY2007 to 19% in 1H FY2011. The company also said that it is very encouraged the incumbent's recent high profile launch of its Fibre-To-The-Home (FTTH) 200Mbps plus WiFi service in Public Housing estates for HK$165.

Ms. June Lam, Associate Director of Marketing, HKBN said, "We are ecstatic to be pioneering the mass take-up of Fibre-To-The-Home. Today, our 1Gbps coverage already surpasses over 1 million households and we are working hard to approach 2 million households coverage by end 2011. As with all new technologies, take-up accelerates once a certain inflection point of acceptance is reached, and we believe that Hong Kong is now at that inflection point"

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