PCCW
| Company type | Public |
|---|---|
| Industry | Telecommunications, Information and communication technology (ICT) |
| Predecessor | Pacific Century CyberWorks Limited |
| Founded | April 24, 1979 |
| Founder | Richard Li (acquired in 1999) |
| Headquarters | Hong Kong , Hong Kong |
Area served | Europe, Middle East, Africa, Americas, mainland China, Asia |
Key people | George Chan (managing director), B.G. Srinivas (managing director as of July 2014), Richard Li (chairman and executive director) |
| Products | Telecommunications services, ICT services, media streaming platforms, payment solutions |
| Website | www |
PCCW Limited (previously known as Pacific Century CyberWorks Limited) is a telecommunications and information and communication technology (ICT) enterprise headquartered in Hong Kong.
As the principal shareholder of the telecommunications firm HKT Limited, PCCW also maintains a substantial investment in Pacific Century Premium Developments Limited. With its base in Hong Kong, the company’s operations span Europe, the Middle East, Africa, the Americas, mainland China, and other parts of Asia.
Subsidiaries and offerings
- Netvigator
- CSL Mobile (brands include "csl", "1O1O", and "Club SIM")
- Sun Mobile (majority ownership)
- PPS (Payment by Phone Service) – an electronic billing payment platform jointly provided by HKT and EPS
- The Club – a customer loyalty programme based in Hong Kong
- HKT Teleservices – provider of contact center solutions and business process outsourcing
- HKT Payment Limited – creator of "Tap & Go," a prepaid mobile payment solution available to Hong Kong consumers
- HKT-eye – delivers over-the-top media content and IPTV via tablets with customized firmware
- PCCW Global
- Console Connect
- Crypteia Networks
HKT Interactive Media/(Now TV/MOOV)
Moov is a subscription-based digital music streaming platform from Hong Kong offering lossless audio tracks, concert footage, music videos, and other musical content.
Discontinued service
- iTV, an interactive television platform.
Viu
Viu is PCCW Media’s OTT video streaming service that focuses on popular Korean dramas and variety programming.
ViuTV
Operated by HK Television Entertainment (HKTVE), ViuTV and ViuTVsix are free-to-air general entertainment channels in Hong Kong launched after securing a 12-year broadcasting license in 2015. These channels serve as complements to Now TV’s subscription-based television services.
Lenovo PCCW Solutions
PCCW Solutions represents the information technology services and business process outsourcing (BPO) arm of PCCW. Formerly called Unihub (which was rebranded from Business eSolutions in 2003), it has provided IT services to leading organizations such as China Telecom, Sinopec, Bank of China, China Mobile, and the Hong Kong Council of Social Service.
On 15 August 2022, PCCW entered into a strategic alliance with Lenovo to establish Lenovo PCCW Solutions (LPS), with Lenovo acquiring an 84% share through direct and indirect holdings. LPS aims to grow its presence throughout Asia—including Hong Kong, Macau, mainland China, Singapore, and the Philippines—targeting an IT services market estimated at $300 billion.
Pacific Century Premium Developments
Pacific Century Premium Developments (PCPD, listed on the Hong Kong Stock Exchange: 432) is predominantly owned by PCCW and focuses on developing and managing property and infrastructure projects across the Asia-Pacific region. In 2004, PCCW took control of Dong Fang Gas Co. Ltd via a backdoor listing by transferring development rights for the Cyberport project—including the Bel-Air residential complex—and subsequently renamed it Pacific Century Premium Developments.
In addition to the Bel-Air development, PCPD holds first refusal rights for converting 60 telephone exchange facilities owned by PCCW into residential and commercial real estate.
UK Broadband
UK Broadband Group (UKBG), a fully owned subsidiary providing upstream services, encountered difficulties within the UK marketplace. The company introduced a 4G network in central London in June 2014. In February 2017, PCCW reached an agreement to transfer ownership of UKBG to affiliated firm CK Hutchison Holdings.
Company history
PCCW Limited was originally established as "Ring Holdings Limited" on 24 April 1979 and underwent several name changes, becoming Tricom Holdings Limited in 1992. Tricom went public in October 1994. In May 1999, Richard Li acquired the firm and renamed it Pacific Century Cyberworks Limited (PCCW) that same year through a backdoor listing.
In March 1999, Richard Li's Pacific Century Group secured a controversial land allocation from the Hong Kong government under Chief Executive Tung Chee Hwa for the Cyberport development, a high-tech residential and commercial project. This initiative was later incorporated into PCCW.
Between 1 and 28 December 1999, PCCW’s share price soared from HK$6.00 to HK$19.50. On 28 December, it became one of Hong Kong's largest publicly traded companies with a market capitalization surpassing HK$170 billion.
In August 2000, PCCW acquired Hong Kong Telecom (HKT), previously known as the Hong Kong Telephone Company. This acquisition transitioned PCCW from a dot-com holding entity into one of the largest diversified corporations in Hong Kong. Additionally, PCCW emerged as the leading Internet service provider in Hong Kong under the Netvigator brand. The acquisition attracted criticism amid concerns regarding ownership concentration and market competition.
By 2003, PCCW’s share value had plummeted significantly due to heavy debt burdens, fierce competition in telecommunications, and setbacks with its joint venture Reach (a 50/50 partnership with Telstra). The stock dropped from HK$129.25 to HK$4.70 over three years, marking PCCW as the poorest performing blue-chip stock on the Hong Kong Stock Exchange during that timeframe.
Cable and Wireless divested its 14.7% holding in PCCW by 2003, recovering only $1.9 billion from an initial $5 billion investment made during HKT’s acquisition.
Richard Li stepped down as CEO in July 2003 but retained his positions as chairman and executive director. Jack So took over as group managing director.
George Chan currently serves as managing director; former Infosys president B.G. Srinivas joined PCCW as managing director in July 2014.
Following several years operating as a wholly owned subsidiary, PCCW reintroduced HKT to the public market via an initial public offering in 2011.
FBI monitoring
An FCC document disclosed that Reach, an undersea cable joint venture between Telstra (then majority government-owned at 50.1%) and PCCW of Hong Kong, was obligated to route all US-related communications through a US-based data storage facility. This site was exclusively managed by FBI personnel, facilitating electronic surveillance authorized under lawful US procedures.
Privatisation efforts
Although China Netcom opposed transferring key assets to foreign entities, it chose not to increase its shareholding in PCCW. In 2006, Richard Li aimed to exit the company and received competing takeover proposals from consortia led by Australia's Macquarie Bank and private equity groups Texas Pacific/Newbridge Capital.
On 11 July 2006, Li consented to sell his indirect 22.66% interest in PCCW to Fiorlatte Ltd, a newly formed entity owned by Francis Leung Pak-to, for HK$9.16 billion. Subsequently, Leung agreed to divest an 8% stake in PCCW to Telefónica for €323 million. Leung, a former Peregrine investment banker with close ties to Li Ka-shing, played a significant role in this transaction. Since August 2000, PCCW had been a Hang Seng Index constituent but was removed from the index effective 10 June 2008.
Alleged Cable & Wireless Acquisition Proposal
In February 2003, the Sunday Times disclosed that PCCW had initiated a preliminary acquisition proposal for Cable & Wireless (C&W) in December 2002, during a period when the British firm's stock price was close to historic lows.
Li clarified that PCCW did not intend to launch a hostile takeover but rather sought a partnership to boost shareholder value. The Times reported that Li was considering an offer valued at £2 billion (approximately US$3.27 billion) for C&W. Initially, PCCW denied engaging in formal negotiations through the Hong Kong stock exchange but subsequently acknowledged making an initial approach at the close of 2002.
On 10 February 2003, PCCW issued an apology for inconsistent statements, which led the Hong Kong Stock Exchange to request further clarification. In the end, C&W declined PCCW's acquisition proposal by February 2003.
Plan for Privatization
Following a shareholders’ meeting lasting seven and a half hours on 4 February 2009, PCCW’s majority stakeholders obtained approval to take the company private by excluding minority shareholders amid allegations of vote manipulation. The strategy aimed to remove PCCW from the Hong Kong Stock Exchange listing while maintaining its parent entity’s listing status in Singapore.
Governance advocate David Webb raised concerns regarding hundreds of agents from Fortis Insurance Co. (Asia), formerly under PCCW, who received board lots consisting of 1,000 PCCW shares each. The Securities and Futures Commission uncovered that Francis Yuen, an associate of Li and part of the buyout consortium, directed Fortis management to allocate roughly half a million PCCW shares divided into board lots among employees.
Although majority shareholders secured High Court authorization for the US$2.2 billion privatization deal, the Appeals Court unanimously reversed this decision, causing delays in the privatization process.
See also
- Jaleco, former subsidiary