Although the Company is reported by the ITU as having a relatively low level of investment as a percentage of GDP this reflects the position of 1985. Now that the Company has embarked upon an accelerated digitalization programme and the further development of the optical fibre network its investment as a share of GDP can be expected to rise.
2.7 FUTURE CONSTRAINTS AND OPPORTUNITIES
4.
This section describes the response of the telecommunications users and customers to the quality and range of service provided by HKT and CWHK and the impact of deregulation. These views are those of the respondents and not of BAH. The respondents were major users of telecommunications and had telecommunications budgets ranging from 0.5% to 15% of their total expenditure, that is from several hundred thousand dollars up to HK$40 million. [4] Overall the business users are 'satisfied to very satisfied' with the level of service provided by the telecommunications companies. The efficiency and rapid speed of response was frequently referred to. Several respondents felt that the level of service had improved in the past 3 years due to the more competitive environment. The prices charged were thought to be low on practically all services with the exception of some international IDD routes and international leased lines.
The only difficulties or constraints referred to were the "static and echoes" on some lines and occasional difficulties in getting cross harbour lines during the busy hours. In some cases large companies have questioned the delays and costs in obtaining permission from HKT to develop their own internal telecommunications services.
Impact of deregulation
The introduction of competition for CPE and value added services and the planned removal of approvals from HKT to a separate body has created many new business opportunities. In particular the users have commented at length on:
the effect of competition on increasing demand and market opportunities, enabling companies to consider new product development and sales growth which would have been restricted in a regulated environment
the effect of deregulation in putting pressure on HKT to upgrade the network; improved terminal products and features have helped to raise operational productivity and efficiency
the consumer benefits from falling prices and from the fact that HKT/CWHK follow technological advances more closely than in the non competitive environment
The results are taken from interviews and submissions of over 90 of the leading companies organizations in Hong Kong covering a range of activities.
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