HONG KONG -- Hong Kong Broadband Network, a wholly owned subsidiary of City Telecom (HK) Limited (HKSE:1137) (Nasdaq:CTEL), recently launched a free 6 months service promotion for new customers switching over from incumbent PCCW's Netvigator broadband service. The offer is specially targeting new customers to HKBN, and offers the first 6 months free for a 30 months x HK$99/month contract.

Given a matured Hong Kong broadband marketplace with household broadband penetration of 82%, the majority of HKBN's growth is coming from existing users from other operators. We found that once a new user has experienced our symmetric 100Mbps service, the churn rate is extremely low at below 1.0% per month. Whilst our broadband service subscriptions have been growing at a record pace, with 73,000 net additions for the 6 months to 28 Feb 2010, compared with 75,000 net additions for 12 months to 31 Aug 2009, we want to continue to fuel our growth toward our 10-year Big Hairy Audacious Goal (BHAG) of becoming the largest IP service provider by 2016.

"Our 6 months free promotion is designed to attract existing legacy copper-based xDSL users to experience the 'WoW' factor of our Fibre based symmetric 100Mbps service. 6 months free will allow existing xDSL contracted users to concurrently use our service side-by-side without additional cost, after which, we are very confident these consumers can tell the difference and finally choose HKBN's fibre internet access," said Ms. June Lam, Associate Director, Marketing, HKBN.

City Telecom (HK) Ltd.