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EXHIBIT 1.1. ARGUMENTS USED TO OPPOSE THE TRANSITION TO COMPETITION
ARGUMENTS USED IN OTHER COUNTRIES
HKT'S CASE
HONG KONG
JAPAN
Agents:
Arguments
Agents:
Arguments
Agents
HKT
Natural monopoly with
NTT
I substantial economies of
:scale
Break up of the monopoly would result in excess cost &
*FCC
Second network is wasteful
and unnecessary because there
is already a high quality network MPT Fixed costs/customer would
be too high
Construction of a second
network would be disruptive
to traffic and
businesses
Noise pollution would be considerable
Degradation in service
standards
Additional staff requirements
would place an upward pressure
on labour
costs and Inflation
Higher tariffs under the
Scheme of Control
Higher Regulatory costs
than at present
service deterioration AT&T
Maintain
universal
service and national security
Competition would :NTT
threaten employment
USA
Arguments
Impedes development of the network
UK
Agents
Arguments
Telecoms is a natural
monopoly and
:Labour
Government
competition
would raise costs
Adverse impact
Telephone :carriers
on
revenues
Post Office :Unions
Post Office
Important to maintain state Involvement :(pre 1980)
Fear of job lass
Fear of rising residential tariffs
BT Management Opposition to
network fragmentation
Note: See below Exhibit 1.2 for explanation of abbreviations