Service rather than price will be the key factor in future for Hong Kong mobile-phone users when choosing an operator, according to the head of an Israel-based telecoms company.
Star*Home chief executive Carmel Sofer said low tariffs might be a strong draw at present, but 'when more advanced and appealing services are launched, then the differentiator will be less on price'.
Star*Home, which develops mobile-network services tailored to travelling handset owners, is in talks with Hong Kong's six mobile operators to provide roaming services that can be accessed in 10 countries.
Mr Sofer said Hong Kong's mobile industry was notable for its strong competitive environment, which had been heightened by the introduction of mobile-number portability in March.
Industry figures indicate that low prices were a determining factor for many users.
Hutchison Telecom, which has slashed prices and offered free mobile phones to new subscribers, recently overtook Cable & Wireless HKT as the leading mobile operator.
Government figures released last week also showed customers were deserting GSM (Global Systems for Mobile) services for the cheaper PCS (personal communications services) standard.
The user base of portable GSM users decreased by nearly 23,000 in the month to September 30, while PCS subscribers increased by about 35,000.
The number of mobile-phone subscribers in Hong Kong increased by 10,000 to 3.6 million in the month.
Star*Home's offerings include easy access to voice mail for users travelling overseas and information services such as restaurant information in the city that the subscriber is in.
The company offered the service to operators, who benefited from the boost in airtime usage by their subscribers, Mr Sofer said.
Carriers do not need to invest in infrastructure and instead route incoming calls from subscribers overseas to Star*Home's network.
Hutchison Whampoa's Israeli joint-venture mobile-telephone network, Partner Communications, is the only operator that has so far confirmed it will use Star*Home's roaming services.
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