PCCW Limited (formerly known as Pacific Century CyberWorks Limited) is a Hong Kong-based information and communications technology (ICT) company, known for being the majority owner of telecommunications company HKT Limited.
|Pacific Century CyberWorks Limited|
|Founded||24 April 1979|
|Richard Li (Chairman)|
B.G. Srinivas (Group Managing Director)
|Products||Fixed-line, Broadband Internet access, IPTV, Mobile, IT Solutions, Data Centers, Contact Centers, Integrated Global Communications, Infrastructure, Advertising and Interactive Services|
Number of employees
|Parent||Pacific Century Group|
|Alternative Chinese name|
|Second alternative Chinese name|
PCCW also holds a majority interest in Pacific Century Premium Developments Limited. PCCW is headquartered in Hong Kong and operates in Europe, the Middle East, Africa, the Americas, mainland China, and other parts of Asia.
Main business and subsidiaries
Commercial and international business
The PCCW Commercial Group provides ICT services to small, medium and large enterprises. The group managed the installation of Asia's largest IP-enabled network for securities and derivatives markets, built for Hong Kong Exchanges and Clearing Limited and known as SDNet. It includes an electronic passport system, known as e-PASS, and the Smart Identity Card system for the Hong Kong SAR Government.
HKT (Hong Kong Telecom)
HKT Group Holdings Limited was formed in 2008 to hold the telecommunications services, media and IT businesses of the PCCW Group, a reorganization designed to improve the Group's operational efficiencies.:166 HKT and its predecessor PCCW-HKT, was the first quadruple play provider in Hong Kong, offering media content and services for fixed-line, broadband Internet, TV and mobile. PCCW acquired HKT, at that time known as Cable & Wireless HKT, in February 2000 from Cable & Wireless.
HKT Group Holdings Limited was re-organized again on the eve of the 2011 IPO of its intermediate parent company, HKT Limited.:167 PCCW Media and PCCW Solutions became wholly owned subsidiaries of PCCW, no longer part of the HKT Limited group. After the IPO, PCCW still held an over 50% controlling stake of HKT Limited, via HKT Trust. Some older parts of the HKT group, such as PCCW-HKT Telephone Limited and PCCW-HKT Limited, remained as wholly owned subsidiaries of PCCW, despite being out of business. Their business was assumed by HKT Limited, it subsidiaries HKT Group Holdings Limited, Hong Kong Telecommunications (HKT) Limited and other second-tier subsidiaries of HKT Limited.
csl, 1O1O, Club SIM
CSL Mobile is a HKT subsidiary, which operates mobile network brands of "csl", "1O1O" and "Club SIM" in Hong Kong. CSL, at that time incorporated as CSL New World Mobility, was re-acquired by PCCW via HKT in 2013. After the 2013 acquisition, HKT also merged PCCW Mobile HK into CSL. CSL was sold by PCCW in 2001, while PCCW Mobile HK, formerly SUNDAY, was acquired by PCCW in 2005–06.
SUN Mobile, formerly New World Mobility, is a joint venture of HKT Limited and Telecom Digital. It was a former joint venture of CSL New World Mobility and Telecom Digital. In 2013 CSL New World Mobility was acquired by PCCW via HKT Limited, from Telstra and New World Development, thus the mobile virtual network operator was re-branded as SUN Mobile.
HKT Teleservices, a subsidiary of HKT, operates a contact centre outsourcing business along with an operation in the U.S. It handles inbound and outbound calls, emails and other transactions for customers.
PCCW Global (formerly Beyond The Network America) is the international operating division of HKT Limited. It was owned by PCCW's sub-holding company HKT Group Holdings Limited (HKTGH) since 2008:166 and HKT Limited since its IPO in 2011.:167
On 24 February 2008, Pakistan Telecom caused a major interruption of access to the video-sharing website YouTube. Pakistani Government authorities instructed Pakistan Telecom (PTCL) to prevent access to YouTube within Pakistan. PTCL complied by changing the BGP entry for YouTube – essentially updating its local internet address book for where YouTube's section of the internet is. The idea was to direct its internet users to a page that said YouTube was blocked. Unfortunately, the ISP announced the new route to its Internet link provider, PCCW. PCCW had recently provided temporary access to PTCL in order to restore the nation's loss of internet access due to a previous major submarine cable break event. PTCL began leaking the BGP announcement to PCCW prior to PCCW's completion of the BGP validation and filtering policies process on the newly activated link. This allowed the announcement to propagate to other networks.
PCCW announced the formation of wholly owned subsidiary Cascade Limited (traditional Chinese: 萃鋒有限公司; simplified Chinese: 萃锋有限公司) in late 2002, and transferred around 3,000 staffs of the group to the subsidiary. It was reported that the staff were offered a wage-cut in the new contract. Cascade became the technical and customer service arm of PCCW.
:166 However, due to 2011 initial public offering of HKT Limited, some of the subsidiaries of HKTGH (which HKTGH was a wholly owned subsidiary of HKT Limited:101) were carved out and returned to be the wholly owned subsidiaries of PCCW.:167 A namesake, Mainland China-incorporated "PCCW Cascade Technology (Guangzhou) Limited" (Chinese: 广州电讯盈科萃锋科技有限公司) is a wholly owned subsidiary of HKT Limited.Started from 2008, Cascade Limited became a subsidiary of PCCW's sub-holding company HKT Group Holdings Limited (HKTGH),
now TV is an IPTV and pay-TV provider in Hong Kong delivered by PCCW Media. now TV serves Hong Kong with more than 190 channels of local, Asian and international programming, such as the English Premier League, Spanish La Liga, Italian Serie A, French Ligue 1, J-League, French Open, ATP World Tour, and World Snooker Tour. In addition, now TV is a producer of news, sports and infotainment programming and a provider of interactive services. nowTV can be viewed on its nowTV app, and select now TV content and interactive applications can also be accessed via the group's 4G mobile network and broadband service.
Viu is an Over-the-top (OTT) video service operated by PCCW Media providing popular Korean dramas and variety shows.
ViuTV and ViuTVsix is a general entertainment television channel in Hong Kong operated by HK Television Entertainment (HKTVE), whose parent company is PCCW Media. The channel serves as a free-to-air outlet of television programmes shown on the channels operated by Now TV. In 2015, HK Television Entertainment was granted a 12-year free-to-air television broadcast license by the Hong Kong Government.
MOOV is a lossless music digital streaming service based in Hong Kong. It provides music content, including songs, concert videos, MVs and other music shows under a monthly fee.
PCCW Solutions is the information technology services and business process outsourcing (BPO) division of PCCW. Press releases prior to February 2006 refer to PCCW Solutions by the name Unihub. Unihub was a re-branding of PCCW's Business eSolutions division, from 1 September 2003.
Business eSolutions division formed a venture with China Telecom to provide IT solutions to major business organizations in 2002. This was in addition to PCCW's PCITC alliance with Sinopec, formed to serve Sinopec plus other players in China's petrochemical sector. The division also contributed to the new Hong Kong Identity Card system in 2003.
In early 2003, Business eSolutions entered a contract to provide services for Bank of China's credit-card back office processing system in China. It also extended a 2002 enterprise resource planning (ERP) project into more provinces for China Mobile and completed the flight information display system (FIDS) for Xiamen Airport, and a human resource management and financial management system for the Hong Kong Council of Social Service.
Pacific Century Premium Developments
Majority-owned by PCCW, Pacific Century Premium Developments ("PCPD", SEHK: 432) develops and manages property and infrastructure projects, as well as investment in buildings in the Asia-Pacific region. PCCW acquired a majority stake in Dong Fang Gas Co. Ltd through a back door listing in 2004, injecting the development rights to the Cyberport project, which includes the Bel-Air residential development, and renamed it Pacific Century Premium Developments.
Apart from the Bel-Air residential development, PCPD holds the right of first refusal to redevelop 60 PCCW-owned telephone exchange buildings into residential and / or commercial properties.
The UK Broadband Group (shortened to UKBG for marketing) is a wholly owned subsidiary and is an upstream service provider. Its UK business has been a failure. In June 2014 UKBG launched a 4G service in central London. In February 2017, PCCW agreed to sell UKBG to related company CK Hutchison Holdings.
The legal person of PCCW Limited was incorporated as "Ring Holdings Limited" (Chinese: 群山企業有限公司) on 24 April 1979. It was renamed several times and known as Tricom Holdings Limited (Chinese: 得信佳集團有限公司) in 1992. In October 1994 Tricom Holdings became a listed company. In May 1999 Richard Li acquired the company, and as a backdoor listing, the listed company was renamed to Pacific Century Cyberworks Limited (Chinese: 盈科數碼動力有限公司; abb. PCCW) in the same year.
In March the same year Richard Li's private company Pacific Century Group won a controversial land deal, acquiring valuable waterfront real estate from the government without any public auction bids. The Hong Kong government, under chief executive Tung Chee Hwa, gave away the land to his new high-tech residential and commercial venture called Cyberport. The development of Cyberport was later injected to PCCW.
The stock of Pacific Century CyberWorks rose from HK$6.00 to HK$19.50 between 1 and 28 December 1999. 23 Dec is a Heritage of Pacific Century CyberWorks, break record of single company in Hong Kong history with a HK$5 billion transaction. Pacific Century CyberWorks became the seventh-listed (value over HK$170 billion) company on the Hong Kong Exchange on 28 December 1999.
PCCW acquired Hong Kong Telecom (HKT) in August 2000, which was formerly known as the "Hong Kong Telephone Company" (founded in 1925). Initially, HKT owner Cable & Wireless entertained a bid from Singapore Telecommunications, but there was Beijing concern about a Singapore company owning the largest Hong Kong telephone system. PCCW entered the scene and offered Cable and Wireless PCCW stock and US$11 billion in bank loans by HSBC, Bank of China, BNP Paribas & Barclays. The acquisition vaulted PCCW from a dot-com holdings company to one of the largest universal corporations in Hong Kong. PCCW is now also the leading Internet service provider in Hong Kong, using the Netvigator brand for dialup modem and DSL service. PCCW has been the object of much scorn in Hong Kong as a result of the HKT purchase. In 2003 the company's stock price was down 96 percent from its 2000 peak. In the face of challenges due to debt, intense local telecoms competition and a struggling international joint venture Reach (50/50 owned by PCCW and Telstra), PCCW was the worst-performing blue chip on the Hong Kong Stock Exchange (HKSE) in 2002 and 2003. Stock price came down from HK$129.25 to HK$4.7 in less than 3 years.
In 2003, Cable and Wireless finished cashing in all the stock from the 14.7 percent stake it had in PCCW. Worth US$5 billion at the time of the 2000 acquisition of HKT, the stock sales yielded only $1.9 billion in the end.
Richard Li gave up his spot as PCCW's chief executive officer in July 2003 but remained as chairman and executive director. Jack So, who left his chairman position at Hong Kong subway operator MTR Corporation Limited, took up the job of group managing director at PCCW on 25 July 2003.
The incumbent Managing Director is George Chan. Former Infosys President B.G. Srinivas has been announced to be the Group's Managing Director effective July 2014.
After several years as a wholly owned subsidiary, PCCW floated HKT again in 2011.
According to the leaked document, undersea cabling company Reach – a joint venture of Telstra (then 50.1 percent-owned by the Australian Government) and PCCW, a Hong Kong corporation – had to send all communications to or from US to a storage facility "physically located in the United States, from which Electronic Surveillance can be conducted pursuant to Lawful US Process." The document also specifies the facility should be run exclusively by US FBI staff.
Although PCCW's substantial shareholder China Netcom had earlier expressed objection to any disposal of key assets to foreign groups, it also refused to increase its stake; Richard Li attempted to exit from the business in 2006. Li received competing offers by two consortia led by Australia's Macquarie Bank and private equity firm Texas Pacific Group/Newbridge submitted expressions of interest last month to acquire PCCW's core telecom and media assets.
PCCW chairman Richard Li has agreed to sell his indirectly held 22.66 percent stake in PCCW on 11 July 2006 to Fiorlatte Ltd, a new startup company wholly owned by Francis Leung Pak-to, for a total consideration of HK$9.16 billion. In turn, Francis Leung Pak-to has agreed to sell an 8% stake in PCCW to Telefónica for 323 million euros. Leung, former Peregrine investment banker, is closely associated with Li Ka-shing. PCCW's stock, which had joined Hang Seng Index (HSI) index on 9 August 2000, ceased to be a HSI constituent, effective 10 June 2008.
Purported Cable & Wireless takeover bid
News report from the Sunday Times on 6 February 2003 revealed that PCCW made a preliminary takeover approach to Cable & Wireless in December 2002 as the British company's share languished near record lows.
Li told the Sunday Times newspaper that PCCW would not launch a hostile bid for C&W but that the two companies could work together to enhance shareholders' value.
The Times quoted Li as saying that he was planning to try again that week with a two billion pound (US$3.27 billion) bid for C&W. Following the news report, PCCW issued a statement through the Hong Kong stock exchange on 6 February 2003 morning saying it had not made a formal offer for C&W and was not in takeover talks with the company. Later in the day, in London and Hong Kong, PCCW issued statements saying it had made a preliminary takeover approach to C&W in a letter at the end of 2002.
PCCW apologised on 10 February 2003 for making what were seen by some in the market as contradictory statements. The Hong Kong Stock Exchange demanded an explanation from PCCW after noting discrepancies between the two statements regarding its approach to C&W about a possible bid.
In a heated shareholders meeting held on 4 February 2009 which lasted seven and a half hours, the shareholders approved the PCCW plan allowing its majority shareholders to force out all minority shareholders of the company amidst allegations of vote-buying. Privatisation would allow PCCW to be delisted from Hong Kong Stock Exchange, while its parent would remain listed in Singapore.
Governance activist David Webb alerted the authorities to allegations that hundreds of agents at Fortis Insurance Co. (Asia), once part of PCCW, may have been given board lots of 1,000 PCCW shares. The Securities and Futures Commission found that Francis Yuen, a Li associate and member of the buyout group, had instructed a senior executive at Fortis to distribute PCCW shares to about 500 Fortis agents. Yuen and Fortis Asia regional director, Inneo Lam, had exchanged telephone calls shortly before Lam ordered half a million PCCW shares that were later split into board lots and given away to his staff; Lam's secretary had asked for, and received, share transfer forms from Yuen's secretary. Majority shareholders gained approval from the High Court to proceed in their US$2.2 billion privatisation, but the Appeals Court unanimously overturned the ruling.
- Jaleco, former subsidiary
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Moody's has also withdrawn the Baa2 senior unsecured issuer rating on PCCW-HKT, which will become dormant.
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On 8 November 2011, Hong Kong Telecommunications (HKT) Limited and PCCW-HKT Limited ("HKTL"), an indirect wholly-owned subsidiary of PCCW, entered into a marketing and promotion services agreement, pursuant to which Hong Kong Telecommunications (HKT) Limited has agreed to provide publicity, promotion and branding services to HKTL
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This month's Tricom Holdings IPO officially closed 12% oversubscribed on 5 October. The 63m share sale at HK$1.20 per share will be listed this Monday.......
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