1.2
all local telecommunications services, after 1995
all local and international telecommunications services, in the longer term.
The study was divided into four separate tasks as follows:
Task 1
Assessment of the current state and future growth potential of telecommunications development and service provision in Hong Kong.
Task 2
Definition and preliminary assessment of alternative future scenarios for the provision of telecommunications services over the next twenty years, involving varying degrees of competition.
Task 3
Identification and analysis of the costs and benefits of the various scenarios, leading to an evaluation of the effect of decisions with respect to a second network and the introduction of cable television.
Task 4
Evaluation of the cable proposals from the two leading consortia, emphasizing the network issues rather than details of programming style and content.
Prior to engaging the consultants, the Government had received submissions from HKT and HCV on the technical and economic feasibility of cable television. New and updated versions of these submissions were then passed on to the consultants. Since network rather than programming matters were to be analyzed, submissions were taken from HKT in the case of the CTHK proposal. The receipt and use of submissions from HCV did not imply that HCV would be the selected cable television franchisee in the event that the Government were to authorize construction of a network separate from the HKT telecommunications system. The HCV submissions were used instead as representative of the approach to network construction likely to be taken by a non HKT franchisee.
THE ARGUMENTS FOR AND AGAINST A SECOND NETWORK OPERATOR
This section synthesizes the key written arguments submitted by HKT and HCV. It also indicates the arguments put forward for and against competition elsewhere in the world (see Exhibits 1.1 and 1.2).
- 2 -