35
Meetings have been held with representatives of both Telco and HCV and their views have been reflected in this memorandum. Expert advice has also been sought from the U.K. Office of Telecommunications.
Financial and staffing implications
36 relates to the appointment of consultants. Informal enquiries by the Postmaster General suggest that a consultancy which takes between three and six months could cost approximately $2.8 million, excluding travelling and accommodation expenses. As the remit of the consultants, as generally postulated in paragraph 34 above, will need to be more clearly defined, this figure can only serve as
as a guide.
The ma in financial implication of the proposals
37
It is not possible to assess at this stage the staffing requirement, as much would depend on the telecommunications arrangements finally chosen. A preliminary review by the Postmaster General indicates that no more than 8 additional staff should be required. Any staffing requirement would be processed in the normal manner.
Public reaction
38
In view of the widespread media coverage that has already been given to the proposal to introduce cable television and related telecommunications issues, there is likely to be considerable public interest
public interest in any announcement on the future development of telecommunications services in Hong Kong. The business community is expected to welcome the Administration's stand on the grounds that increased but regulated competition in the field of telecommunications should result in cost and service benefits. The general public is likely to be concerned over any implications of higher telephone tariffs and to a lesser extent over possible inconvenience on the roads. However, the Administration's decision to consult further with Telco and HCV before coming to a final view is likely to be seen as a reassuring move.
Publicity
39
A press release will be issued stating that following consultation with the Executive Council, the Government has decided that further consultations with the two main contenders for the provision of cable television will be necessary before a final decision is taken on whether Hong Kong should have a second telecommunications network. This is a complex matter with far reaching implications and the Government believes that full and careful consideration should
CONFIDENTIAL