CTM: Contract with gov’t ‘extensively discussed’

Vandy Poon

Telecommunications service provider CTM has finally defended itself against criticism by the MSAR government, saying that the contract signed in 2009 had been “extensively discussed.”
CTM CEO Vandy Poon told reporters that business operators still choose to establish line connections through CTM instead of setting up individual networks.
“Mobile phone operators have been choosing to purchase from CTM all these years instead of using their [own] ways to provide a line connection,” he said. “As a matter of business, the service they purchase with us is more competitive than that of others.”
Although CTM believes they are the best team for the job, the company is willing to work with other suggested providers.
“When it comes to our network and knowledge […] I believe that we are the most suitable partners in Macau to continually provide the service. If the government or an individual wants to risk it, they should,” said Poon.
However, Poon added that it would not be good for the region if the government fails to find an experienced network operator.
Poon also revealed that there are plans to lower charges for broadband and optic fiber service this quarter.
During a Legislative Assembly (AL) plenary session last week, many lawmakers also argued that there was a coalition between the government and CTM. They called for the implementation of a mechanism for the AL to supervise concession contracts, in order to “stop the collusion of interests between the government and businessmen.”
One of the lawmakers who criticized CTM was Chan Meng Kam, who said that if the contract was terminated, the compensation would amount to about MOP3.1 billion.
Chan also highlighted the fact that in 2009, the aim of the mid-term review of the agreement had been to achieve market liberalization.
“Five years have passed and the monopoly continues. Nowadays the market share of CTM is 100 percent of the [local] Internet [service] and of the telephone landline [privates] and about 100 percent of data services. If the intention was to liberalize the market, then CTM has ‘made a hostage out of the emperor to control the court’,” Chan said.