EXHIBIT 5.2 ECONOMIES OF INTEGRATION (1): COMBINING CABLE TV NETWORK WITH MAIN TELECOMMUNICATIONS NETWORK
Net Present Value (in 1988) of costs to the year 2007; service commencing in 1991 and connecting 930,000 lines by 2007.
HK$ 2,470
million
Fibre Network
46
35%
Electronics (horiz- 62
124%
Economies of
ontal network)
HK$2,025
million
integration - HK$445m (18%)
Cable ducting
528
35%
+
(horizontal
16
77
network)
187
Maintenance
219
59%
130
Cable (vertical)
270
270
Electronics
260
(vertical)
Consumer
98
260
98
electronics
Technical staff
987
100%
987
Costs of separate cable TV network (Scenario 2)
Costs of cable TV network integrated with main telecoms network (Scenario 1)
100
109