CyberWorks chairman Richard Li Tzar-kai has promised "extraordinary" growth in customer service capacity, "explosive" growth for shareholders and "unprecedented" growth for staff. He said: 'Today marks the beginning of a new era - an era that will be good for Hong Kong, Asia and the global new economy in which we will now be better able to operate as a major player.'. Mr Li added that in the coming weeks the company would unveil a "new aggressive and focused corporate structure" called "eight by three", merging eight business units into three operating sectors. It is widely believed that those sectors will be fixed network services, high-speed broadband and Internet. mobile services and that they will come under a joint venture to be created with Australia's Telstra. Mr Li said: 'The new company created by today's decision essentially adds sparks to the tried and true.'.

The merger is Asia's largest-ever outside Japan, with an aggregate market capitalisation of HK$393 billion. The terms of the deal include a cash consideration payment of US$11.32 billion and all Cable & Wireless HKT shares will be cancelled with the company becoming wholly owned subsidiary of CyberWorks. Cable & Wireless HKT shares will be suspended from trading on August 9 and de-listed on August 17.

Cable & Wireless HKT, which operates the largest broadband network in Hong Kong alongside its mobile and traditional fixed telephony services, gives CyberWorks a prime platform for implementing its vision of converged TV and Internet content. PCCW's Network of the World (NOW) began operating in late June via a satellite that can reach viewers across Asia. Though broadband Internet access and two-way cable systems are relatively rare across the region, CyberWorks has already begun offering NOW on HKT's broadband DSL (digital subscriber line) network in Hong Kong.

The merger may help to transform Cable & Wireless HKT from an incumbent carrier in a market undergoing deregulation into a regional company with a multimedia content business and extensive investments in Internet companies. However, there is the problem of a heavy initial debt burden and the organisational challenge of merging and old style company with a new economy one.