Hong Kong Broadband Network (HKBN) is a fixed telecommunications network services carrier operating in Hong Kong. The company provides fully integrated and connected facilities based telecommunication services such as unlimited local voice, unlimited broadband access, and pay TV with more than 60 channels (Tsang, 2010). It is presently the leading alternative residential broadband and voice carrier in the region (Tanner, 2011). HKBN deployment achieved outstanding results in a relatively short time. The number of its subscriber lines rose to 20,000 within few months while the current growth rate of new subscribers is rooted at an average of 9,000 to12, 000 per month (Clark, 2010). The company constructed its own fibre optic network, and, as a result, it became the first service firm to offer ‘fibre to the home’ technology (Tanner, 2011).
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HKBN has been able to achieve such tremendous outcomes in a short time due to its superior strategies. HKBN crafted a strategy to concentrate on the mass market for small-to -medium enterprises (SMEs) and residential homes in places with dense population (Tsang, 2010). These areas had been overlooked previously as low priority for other operators. Thus, the company planned to leverage the merits of VoIP including fast service deployment, low initial cost, and employment of a solo IP network for all media and decreased operational expenses (Tsang, 2010). These factors functioned as sources of competitive advantages. Consequently, this allowed the firm to provide multi services offerings including international direct voice, dial and broadband content at low price points that were unprecedented (Tanner, 2011). These low prices attracted potential and existing customers alike including those of competitors. The bottom line was that HKBN was offering superior services at relatively low costs, and this enabled it to grow in terms of market share as well as consumer brand loyalty.
In the same vein, the fact that HKBN owned the whole network enabled it to profit significantly from the value price points (Clark, 2010). Other operators do not enjoy such advantages as they have laid their services on an external network owned by other companies; hence, they act as network resellers, and are more than often priced out. Also, the dependency on hired networks does not provide competitors with opportunities to promise consumers of the same service level as HKBN (Tanner, 2011). The network enables the company to leverage existing infrastructure and move data and voice traffic onto a single infrastructure. Again, it allows HKBN to grow services revenue relative to rivals (Tsang, 2010).
Furthermore, most people have been attracted to the network due to the super high broadband speed throughout the period of their contract with the firm, extensive choices for broadband services and superior value (Tanner, 2011). The consumers find the network reliable, and this is reinforced by the firm’s promise of compensating any clients that experience low speed than what is stated in the contract. This promise creates the perception that the company is serious and committed to the needs of users, as opposed to rivals who do not offer such a form of assurance. Customers will always be attracted to products that guarantee them value for their money, which is what Hong Kong Broadband Network is doing.
Lastly, the company targets the price sensitive densely populated residential sector by undercutting its rivals on price. Therefore, the IP network provides HKBN with massive competitive advantage allowing it to concentrate mainly on value pricing instead of penetration pricing; hence, effectively targeting the mass Hong Kong market (Tanner, 2011).
Clark, R. (2010). Broadband innovator. Telecom Asia, 21 I (4), 26.
Tanner, J. (2011). Fast, cheap and guaranteed. Telecom Asia, 22 I (4), 26.
Tsang, K. (2010). HKBN offers world’s best value broadband. Telecom Asia, 21 I (10), 13-14.