XHIBIT 5.2 ECONOMIES OF INTEGRATION (1) : COMBINING CABLE TV NETWORK WITH MAIN TELECOMMUNICATIONS NETWORK
Net Present Value (in 1988) of costs to the year 2007; service commencing in 1991 and connecting 930,000 lines by 2007.
HK$ 2,470
million
Hub Sites
46
35%
4
Fibre Network
62
124%
HK$2,025
million
Economies of integration= HK$495m (18%)
Billing System
528
35%
16
77
187
Service Centre
219
59%
130
270
Marketing
270
Billing Operations
260
Fixed Cost per
Customer Premise
98
260
98
Technical Staff
987
100%
987
Costs of separate cable TV
network (Scenario 2)
Costs of cable TV network integrated with main telecoms network (Scenario 1)
109