CTEL Hong Kong Television Network Ltd. (MM)

CEOcast.com Interview with Ricky Wong, Chairman - City Telecom Business Strategy Update HONG KONG, Sept. 1 /PRNewswire-FirstCall/ -- Web recording of the CEOcast.com Interview with Ricky Wong interview is available at http://www.ceocast.com/ . Presentation slides are available under the Press Release section at http://www.ctihk.com/ . Media enquiries: Jessie Cheng Tel: 852-3145-4118 Fax: 852-2199-8372 Email: IR enquiries: NiQ Lai Tel: 852-3145-4710 Fax: 852-2199-8442 Email: About City Telecom (NASDAQ:CTEL) -- City Telecom (HK) Limited is a NASDAQ (code: CTEL) and Hong Kong (code: 1137.HK) listed, network-based integrated telecoms service provider. -- HKBN, a wholly owned subsidiary of City Telecom (HK) Ltd, has deployed the world's largest Metro Ethernet network. Powered by Cisco, this Metro Ethernet covers 1.2 million households, 60% of the total 2.1 million households in Hong Kong. Cisco uses HKBN as a global all-IP showcase. -- HKBN is committed to expanding its Metro Ethernet deployment from 1.2 mn to 1.7 mn homes pass (approx ~75% of Hong Kong's total households). At that point, HKBN will offer the far majority of Hong Kong's population, a superior network in terms of both performance and cost, over the respective PSTN and Cable Pay-TV legacy incumbents. -- HKBN's Metro Ethernet network is capable of up to 100 Mbps point-to- point access to each of these 1.2 million households. -- HKBN currently offers an all IP-based triple-play of broadband, Voice- over-IP and Content-over-IP (Pay-TV) services. Despite being just 4 years old, HKBN already has achieved a commercial mass of 465K subscriptions consisting of 205K broadband, 230K voice and 30K Pay-TV subscriptions as of end July 2004. -- HKBN has an active Small-to-Medium Enterprise (SME) account base of over 60,000, serviced by a dedicated SME sales and support staff of over 400. -- Accumulated end-to-end cost of this network deployment has been contained to less than HK$1,000 (US$130) per home, which allows for HKBN to profitably offer its triple play services at 50-65% below incumbent rates, yet still a generate positive return on capital. This HK$1,000/home pass cost is some 1/3 to 1/5th of comparable international norms for a network of this capacity. -- For reference HKBN currently charges US$12-14/month per service for unlimited local voice, 10 Mbps bi-directional unlimited broadband or 35 channels pay-TV. In short, HKBN offers the full triple-play suite for approximately US$35/month, which is less than the typical cost of broadband-only in a major city like New York. DATASOURCE: City Telecom CONTACT: Media enquiries: Jessie Cheng, +852-3145-4118, or fax, +852-2199-8372, ; or IR enquiries: NiQ Lai, +852-3145-4710, or fax, +852-2199-8442, , both of City Telecom Web site: http://www.ctihk.com/ http://www.ceocast.com/

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