EXHIBIT 5.5 ESTIMATED USER BENEFITS ARISING FROM A SECOND TELECOMMUNICATIONS

NETWORK PROVIDING NON FRANCHISED SERVICES (SCENARIO 3)

Net Present Value (in 1988) of revenues and benefits to the year 2007; service commencing in 1990

Other

HK$ million

HK$ million

10%

88

HK$ million

8,846

10%

885

15%

133

Data and VAS

16,141

International

telex and

15,188

leased lines

International

voice

(overseas

33,786

portion)

International

voice (local portion)

17,107

Business

lines

(including

13,176

leased)

Residential lines

12,533

Telecommunications

revenues

% affected by competition

Total revenue affected by competition

% prica reduction

(illustrative)

Total user benefits

114

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