More mobile mergers mulled

26 Oct 2005

New World Holdings, the parent of Hong Kong wireless operator New World Mobile (NWM), has revealed it is conducting a feasibility study into a merger of NWM with one of the country’s other mobile operators. Speculation was quick to finger Hong Kong CSL, a wholly owned subsidiary of Australia’s Telstra, as a possible partner. Telstra has made no secret of its willingness to sell non-core assets such as CSL, if the right price can be negotiated. CSL had in the region of 1.3 million customers at the end of September, while NWM had around 100,000 fewer.

The Hong Kong telecommunications arena is undergoing something of a period of consolidation. China Mobile (Hong Kong) is in the process of purchasing a stake in China Resources People’s Telephone Company, while PCCW is taking Sunday Communications private after securing a 79.35% stake in the firm.

Hong Kong