"New" Pacific Century CyberWorks unveils strategy
"8 X 3" structure geared to capture global opportunities
Hong Kong August 17, 2000 Pacific Century CyberWorks (SEHK: 0008) announced its global growth strategy today, upon completion of its US$38 billion merger with the former Cable & Wireless HKT.
The new PCCW will utilize an innovative "8 X 3" model that operates eight business units via three operating sectors, operating on principles of accessibility, accountability and transparency.
The new structure is designed to best realize the myriad Internet, broadband and communication opportunities in the Asia-Pacific region and beyond, said Richard Li, Chairman and CEO of PCCW.
"Today's merger has created a first-of-its-kind company," said Mr. Li, who founded Pacific Century CyberWorks in 1999.
Mr. Li identified the three sectors as Telecommunications Services, Global Communications Services and Net Enterprises.
Telecommunications Services consists of fixed line operations, and represents the engine room providing cash for the other two growth sectors. Funds are generated from 3.7 million business and residential telephone lines and 77,000 broadband residential and business customers. Operating initially in Hong Kong, this sector intends to expand into Greater China.
Global Communications Services consists of two business units: Mobility Services and Connectivity Services. PCCW intends to use strategic joint ventures to allow this sector to expand regionally and globally.
The third sector is Net Enterprises, consisting of four business units: Broadband Business to Consumer Services, Business to Business Services, Data Center/Web Hosting Services and CyberWorks Ventures.
The eighth business unit within PCCW, Infrastructure Services, serves all sectors and units.
Infrastructure Services directly support all three sectors
PCCW Deputy Chairman Linus Cheung said more customers outside the SAR will be able to benefit from the Company's well-equipped Telecommunications Services sector, which employs about 15,000 people.
"We see a world of telecoms opportunities right here in Asia," said Mr. Cheung. "Our new company is already Hong Kong's leading provider of local and international services and Internet access, the second-largest operator of mobility services and a major player in broadband services as well. We will continue to build on this strong foundation.
The business units feature the following assets:
Further increasing the efficiency of the 8 X 3 model is PCCW's adoption of a Strategic Integration Process (SIP), which will function as a communication conduit throughout the new organization.
The SIP is intended to link strategies and ensure coordination within and among sectors and business units without adding a level of bureaucracy. While addressing tasks most central to value creation, the SIP will provide Chairman Richard Li with direct access to sector Managing Directors and Business Unit Presidents.
Retaining the name Pacific Century CyberWorks was the overwhelming choice of the newly merged company and received further endorsement by focus groups of HKT staff, said Mr. Li.
The Company also has a new Executive Committee and management.
Other executive management in alphabetical order:
Alexander Arena, aged 49, is Deputy Chairman of the Company's Executive Committee. Mr. Arena is also a Director of Pacific Century Regional Developments Limited.
Linus Cheung Wing Lam, aged 51, is a Deputy Chairman of Pacific Century CyberWorks and a member of the Executive Committee. Prior to the merger of Pacific Century CyberWorks and Cable & Wireless HKT, Mr. Cheung was Chief Executive of Cable & Wireless HKT and Executive Director of Cable & Wireless plc.
David Prince, aged 49, is Group Chief Financial Officer. Mr. Prince is also a member of the Company's Executive Committee.
Peter To, aged 52, is a Deputy Chairman of Pacific Century CyberWorks, and Managing Director and Chief Executive Officer of Pacific Century Regional Developments Limited.
Norman Yuen Kee Tong, aged 51, is Deputy Chief Executive Officer of Pacific Century CyberWorks and a member of the Company's Executive Committee. Mr. Yuen is also a member of the Company's Business-to-Consumers Executive Committee.
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For further information, contact
Pacific Century CyberWorks
Tel: 852 2514-8883
Fax: 852 2514-8884
Note: This is a shortened version of a press release issued in Hong Kong on 17th