EXHIBIT 5.9 BENEFITS OF TELECOMMUNICATIONS COMPETITION: SENSITIVITY TO
DIFFERENT DATES OF SERVICE COMMENCEMENT
Net Present Value (in 1988) of user benefits to the year 2007.
YEAR OF COMMENCEMENT OF LOCAL VOICE SERVICE
1990
$ 7,581 m
1995
$ 6,917 m
1995
$ 2,100 m
$ 1,600 m
YEAR OF
COMMENCEMENT
$ 6,463 m
$5,797 m
OF INTERNATIONAL
2000
$ 2,000 m
SERVICE
$ 1,500 m
2006
$4,245 m
$3,579 m
$ 1,717 m
$ 1,428 m
Benefits arising from competition (assuming 15% efficiency improvement)
Incremental costs incurred by operating separate networks
Note: Only the option represented in the lowest right hand box (Inland voice service from
1995, international service from 2006 ) is consistent with the existing franchises of the Hong Kong Telephone Company and Cable & Wireless (Hong Kong) Ltd.
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