Hong Kong rules Far East's new IPTV service.

In 2003, PCCW Ltd., the largest telecommunications provider in Hong Kong, launched the "NOW broadband TV" IPTV service through its subsidiary, PCCW Media Ltd.

At its launch, 23 channels were available--now there are over 70 channels of local, Asian and international content offered, with most of these international channels carrying Chinese subtitles.

The basic broadband TV service includes 12 free channels, while all premium channels are available on an a-la-carte basis. The company has content deals with ESPN, Discovery, MTV, E!, HBO, Disney, Cinemax and Hallmark, among others, and each of those channels is available for an additional a-la-carte fee. Users can view their bill on their TV sets before selecting to buy a channel.

PCCW's broadband DSL Internet Service Provider (ISP) is called NetVigator. Their ISP's value-added services include video communications, parental control, spam blocking, digital images and video storage. Five different service plans--ranging from Basic to Multi-Users (up to four users)--are available. The basic plans have a download bandwidth of up to 1.5 Mbps, while the most advanced service has a bandwidth of up to six Mbps. The company also offers NetVigator Wireless Broadband, a service that supports Wi-fi standards as well as Bluetooth technology, and provides wireless Internet access in 350 "Hot Spots."

Subscribers to PCCW's NetVigator 3 Mbps (or higher) broadband DSL service can subscribe to NOW's basic service for free. Broadband TV can be bought without the NetVigator DSL service for a monthly fee, but the IPTV installation fee is waived for NetVigator DSL subscribers. Hong Kong was identified as Asia Pacific's fastest-growing pay-TV market in 2004, with the overall number of subscribers rising 34 percent, to about 1.1 million. The number of new subscribers to NOW has tripled original expectations each month. By June 2005, the total number of subscribers was at 441,000, up 22 percent from 361,000 at the end of December 2004, generating an Average Revenue Per User (ARPU) of HK$110 (U.S.$14.15). NOW television's success has also helped strengthen PCCW's broadband services in Hong Kong and reduced customer churn. By June 2005, the total number of broadband access lines rose eight percent to 857,000, from 796,000 at the end of December 2004. Similarly, consumer broadband grew to 715,000 lines at the end of June 2005 from 660,000 lines at the end of last year.

The IPTV service has proven to be very popular in Hong Kong, and PCCW'S fiercest competition comes from Hong Kong's Broadband Network Limited (HKBN), which now offers Fiber-to-the-Home service to 800,000 homes. PCCW, is expected to follow suit with its own fiber offering in response to this increased competition. Currently, PCCW has an improved phone network in the form of its New Generation Fixed Line (NGFL) services.

In 1993, PCCW became the world's first all-digital network, and it has begun its transition toward an all-IP infrastructure. Today it delivers Internet Protocol (IP) services to corporate and consumer customers throughout Asia, particularly in greater China. PCCW's goal is to provide an infrastructure that converges all services--voice, data, video and applications--onto one network.

PCCW is expanding its wireless broadband Internet access outside of Asia, as well. The company has launched wireless broadband in six towns west of London and rollout is continuing across the U.K.