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News Analysis: Monopoly Being Broken on Macao's Telecom Market
The establishment of two new companies is expected to break down the monopoly of the Macao Telecommunications Company (CTM) on the market, analysts noted.
Smartone Mobile Telecom, a well-known enterprise headquartered in Hong Kong, started business in Macao Tuesday. Just a few days ago, the Hong Kong Hutchison Telecom also set up a subsidiary here.
For a long period of time, the telecom business including phone service and Internet business was managed solely by the CTM in Macao. Francis Tam Pak Yuen, secretary for economy and finance, noted that the competition among the three companies will improve the order in the telecom market and benefit the customers.
The special administrative region (SAR) government will provide the companies sound service and necessary support, he said.
The Macao Legislative Assembly will soon deliberate and issue a service and charging regulation on the telecom businesses.
The regulation is to encourage fair play among the companies and protect the interests of the users, according to Leong Heng Teng, a member of the assembly, adding that it will lay a basis for a perfect telecom law.
Hutchison and Smartone are required to set up high-quality telecom networks in six months in line with a government rule. Hutchison has announced that it will take the lead to open the WAP (wireless application protocol) service in Macao.
Hutchison has an ambitious plan to obtain half of the market shares in Macao in three years.
Both companies have promised to employ about 100 people in the first year and 70 of them will be Macao residents. Telecom talents are also what they compete for.
Hutchison plans to invest about 200 million patacas (25 million U.S. dollars) in Macao in five years while the accumulated figure for Smartone will reach at least 110 million patacas (13.75 million dollars) by 2005, according to sources from the companies.
Advertisements for the two companies were prominently featured in all leading Macao newspapers in the past few days.
Tao Yongqiang, director of the Macao Telecom and Information Technology Development Office, urged the companies to expand their business scope and draw more new customers, instead of "seizing the same piece of cake."
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