HKT becomes first Hong Kong-funded telecommunications operator to obtain approval for pilot operation of Value-Added Telecommunications business in mainland China

HKT (SEHK: 6823) – HONG KONG, 28 February 2025 – HKT’s wholly owned subsidiary received approval to participate in the pilot programme to expand the opening-up of Value-Added Telecommunications (VAT) services in mainland China. It is the first Hong Kong-funded telecommunications operator to obtain qualifications for Internet Service Provision (ISP) and Internet Content Provision (ICP). This marks an important step in HKT’s participation in the opening up of the country’s telecommunications industry since the group began developing its business in mainland China in 1992.

Last October, the Ministry of Industry and Information Technology (MIIT) of China launched the pilot programme to expand the opening-up of Value-Added Telecommunications services. The scheme allows foreign enterprises to operate wholly owned VAT businesses, including Internet Data Centres (IDC), ISP, ICP, online data and transaction processing services, in designated areas of Beijing, Shanghai, Hainan and Shenzhen. Enterprises will not only be able to expand their business scope but also deepen their sustainable participation in mainland markets such as computing power and cloud services, in a joint effort to promote the development of relevant industries in mainland China.

Steve Ng, Managing Director of Commercial Group, HKT, said, “As Hong Kong's leading telecommunications and technology service provider, HKT plays a significant role in the telecommunications as well as innovation and technology sectors in both Hong Kong and mainland China. With high-quality network services, system integration expertise and proven experience in delivering digital solutions, HKT and its subsidiaries offer comprehensive support for Chinese enterprises looking to 'go abroad' as well as foreign companies seeking to 'come in'. Our subsidiaries in mainland China are legally permitted to operate multiple VAT businesses, providing tailored network services, all-round innovative digital solutions, and enterprise managed services to corporate clients, helping them succeed in a highly competitive market.”

He added, “Possessing a wealth of global network resources, HKT is committed to helping enterprises expand their market and business footprint across the sectors of new-energy vehicles, retail, information technology, finance and manufacturing, empowering them to implement their 'going abroad' strategies by extending operations into Southeast Asian countries. HKT will continue to support the development of the telecommunications market in Hong Kong and mainland China through robust networks and professional services.”

Reference:  https://mp.weixin.qq.com/s/HbtvuVRD_XDtIdD2hPIRzQ