Apart from the de facto basic network infrastructure provided under the franchise by HKT, other telecommunications products and services are either "obligatory" or "non franchised". Obligatory services represent those services which HKT is obliged to provide as part of the basic network, but as competitive services not within the Scheme of Control. These items are covered within the Obligatory Agreement; they include PMBXS, international data services, Datapak, miscellaneous telephone equipment and the value added revenues of facsimile services. As in other countries the process of liberalization began with customer premises equipment (CPE). Indeed some services such as radio paging and products like PABXS were always sold privately in Hong Kong even before the deregulation of 1983.
The following section considers first the provision of CPE and particularly its growth and development since 1983 and then assesses the data and other new services provided on a non franchised basis in Hong Kong.
All other services deregulated in 1983 and thereafter fall within the non franchised category. During the past five years of deregulation HKT has transferred one third of its business to three subsidiary companies. These are:
CSL, established in 1983 principally to supply business telecommunication systems and data services, including telephones, keylines and PABX equipment. CSL operates 18 retail outlets which offer a wide range of equipment from handsets to personal computers. It has a sales force of over 400 staff. CSL also operates the Datel Message Service, Viewdata, mobile radio and pagers.
Computasia, which commenced business in 1986 to provide computer software and services as well as data processing services to the HKT Group. It acquired Asiadata in 1987 which was the data processing subsidiary of CWHK.
IBS, which represents ROLM, a subsidiary of IBM, supplying voice and data digital communication systems, servicing and telecommunications consulting services.
2.4.2 Telephone handsets
Since 1984 the supply of all telephone instruments has been liberalized in Hong Kong. The only proviso is that all equipment receives "Per- mission to Connect" from HKT to assure the maintenance of technical standards. Following complaints of "delays and unnecessary complexities" the equipment approvals process will now be transferred to Government appointed agents. The market for telephone instruments is vibrant in Hong Kong, but HKT still rent basic push button coloured phones for which there is a healthy demand.
There are over 2.5 million telephone sets in use; there was a net increase of 159,300 in 1986-87. The number of rented telephone sets has been falling rapidly, from 0.75 million a few years ago to 0.5 million today. There are virtually no new rentals, as customers prefer to buy
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