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EXHIBIT 1.2. ARGUMENTS USED TO FAVOUR THE TRANSITION TO COMPETITION
HCV'S CASE HONG KONG
Agents
Arguments
HCV
Lower tariffs
Increased rate of
Innovation
R&D spin offs in electronics
and software. Local
manufacturing of some
components
Increase choice of
telecommunications
products and services
Improved network and
service quality
Financial
Institutions
Security in diversity
Equipment Stimulation/proliferation and service of new value added services suppliers and customers premises
equipment
ARGUMENTS USED IN OTHER COUNTRIES
JAPAN
Agents:
Arguments
Agents
USA
Arguments
UK
Agents
Arguments
MPT
Barriers to
Users
NTT
competition
inhibit information
industries
Private networks would be cheaper & result in cost savings
Conservative Politicians
Support for
competition & :consumer choice
Information
Service
Desire to develop
Treasury
:Desire for sale
Industry
providers
new specialist
development
products
promotes efficiency
FCC
Lower costs
FCC
Reduces barriers
DTI
to entry for smaller niche product
suppliers
CPE Vendors
Users
proceeds to reduce public sector borrowing Erequirement
BT equipment :not comparable to that in other countries
:Need to speed Cup approvals
process
Discontent with BT's services Chence
Support for :Mercury
Notes to exhibits 1.1 and 1.2.
Explanation of abbreviations used in Exhibits 1.1 and 1.2
AT and T American Telephone and Telegraph Corp (USA)
British Telecom plc (UK)
BT
OPE
DTI
rec
Customer Premises Equipment Department of Trade and Industry (UK)
Fodoral Communications Commission (USA)
HCV
HKT
MPT
NTT
R and D
Hutchison Cable Vision (Hong Kong)
Hong Kong Telephone Company (Hong Kong)
Ministry of Posts and Telecommunications (Japan) Nippon Telephone and Telegraph (Japan)
Research and Development
Department of Trade and Industry (UK)
Federal Communications Commission (USA)
IIN
R and D
Nippon Telephone and Telegraph (Japan) Research and Development
EE
DTI