SmarTone vs PCCW

In my previous post, I said I doubted why SmarTone would get into the stagnant fixed line phone market. Saw the above comparative ad that is trying to get head-on with PCCW. Smartone is a new entrant into the fixed line market and I can understand why it uses this ad trying to saying to consumers "I'm better than the leader". What has puzzled me is that why PCCW has reacted with a comparative ad below so similar to that of SmartTone. First, they look the same and are confusing consumers. Second, PCCW shouldn't have reacted like a small guy as it is the leader. Leaders advertise leadership rather than trivializing the message as what the challenger says. Finally, should it react with advertising in the first place ? Would PR be a better tool ? Like taking the initiatives to provide comparative information to the press and let them do the comparisons. Well, if you are really confident that your service is really better...