Hong Kong’s Communications Authority has given the green light to HKT’s acquisition of larger rival CSL subject to significant conditions.
The US$2.42bn deal, first announced in late December, allows telecoms group PCCW-owned HKT to become the…
Hong Kong’s Communications Authority has given the green light to HKT’s acquisition of larger rival CSL subject to significant conditions.
The US$2.42bn deal, first announced in late December, allows telecoms group PCCW-owned HKT to become the leading operator in the city with an estimated 31% market share.
Remedies set out by the regulator include that the two companies must divest some 3G spectrum and continue to provide MVNO’s network access for at least three years. They will also be banned from bidding in any 3G spectrum auction in Hong Kong for a period of five years.
Furthermore, HKT must continue its existing 3G network capacity sharing agreement with competitor China Mobile Hong Kong.
Late last year, HKT said it would buy Australian operator Telstra’s 76.4% stake in CSL for US$1.85bn and the remaining 23.6% held by New World Development, a local conglomerate, for US$572m.
The deal came just over 10 years after Telstra bought CSL from billionaire Richard Li’s PCCW for US$2.3bn.
The merger will reduce the number of competitors in the Hong Kong market from five to four players.
