Leading Hong Kong Energy Group Moves Into Telecoms, Internet Sectors

by Mary Swire, Tax-news.com, Hong Kong

25 April 2001

According to a report in the Hong Kong press, the SAR's largest power supplier, China Light and Power (CLP Holdings) is diversifying into the competitive telecommunications sector with the launch of a retail telecom brand and an Internet Service Provider (ISP) unit this week. The unit will be called Oxygen, and the company says that the move into the telecommunications is a necessary, if not an easy, step.

Michael Kadoorie, chairman of CLP Holdings, told the Hong Kong i-Mail that telecommunications was an area the company must be involved in, saying: 'It will add value to shareholders and we will provide Hong Kong an additional avenue of choice.'

Currently, CLP's sales of electricity are slowing down and its entry into Hong Kong's highly competitive world of telecoms is an attempt to stop falling revenues. However, it will not be an easy nut to crack. Whilst CLP dominates in the provision of electricity, Hong Kong is flooded with telecom and Internet firms.

Nonetheless, Mr Kadoorie said the CLP would do well due to its superior infrastructure network, telling the Hong Kong i-Mail: 'The telecommunications business is moving very rapidly and when you get on the bandwagon, I think it's always better for other people to pioneer.' He said the company's network as well as its mainland-linked fibre optic network would give it an advantage.

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