In part because of the callbackers, dominant carrier Hong Kong Telecom has slashed tariffs to North America, Europe and Australia, though the new rates are still not as low as those offered by the callbackers . By piggybacking on bigger giants. Callback operators buy their excess capacity, then sell it to individual users and businesses in countries where telephone companies charge an arm and a leg - and governments impose heavy taxes. The enterprising firms are raking it in. By the end of this year, the number will have grown to more than 100.
Customers get an American dial tone through a simple procedure.
They call up a number, say in Seattle, and hang up after the first ring. They are not charged for that call, since the other line was not picked up. When the client picks up his ringing phone seconds later, he gets an American dial tone. He can then call or fax anyone in the world using an American phone company's line - and cheap rate. In Hong Kong, some users need not even hang up.