1
2
1
3.
Sir, before explaining the underlying
principles governing the determination of these new
thanks to
charges, I would like to express my
Mr Francis Tien and his Unofficial colleagues on the
Economic Services Working Group for the time and effort
they have spent on the matter and for the helpful and
constructive suggestions they have made. The Group held
two meetings with the Administration. We agreed that
because the public mobile radiotelephone service is new
Hong Kong, it is desirable that a review of charges should
be conducted twelve months after the service provided by
the three licensees has come into operation.
to
4.
Interconnection
charges should be levied on the
each
basis that there will be no significant cross-subsidization
between the Telephone Company's various services; and the
charges should as far as possible reflect the cost of
providing the use of the public telephone system to
type of subscriber. Thus, the interconnection charges
should comprise first, a fixed rental component to cover
the capital cost of the interconnection line, and
installation and maintenance costs; and second, a usage
charge component to cover the average cost of switching and
junction circuits. There is included the appropriate
permitted return under the Scheme of Control.
15.
These
1