CONFIDENTIAL
9
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other expenses of INTELSAT. In the case of earth stations
in Hong Kong, the appropriate utilization charges are paid
by the Cable and Wireless Group directly to INTELSAT. As
of March 1989, the Group used 3,969 INTELSAT voice grade
circuits to and from Hong Kong on a full-time basis.
Additional channels for television are used on an "as
required" basis. Although the applications for the
approval of earth stations to utilize the INTELSAT space
segment and for the allotment of
INTELSAT space INTELSAT space segment
capacity must formally be submitted to INTELSAT by the
Signatory (Article 14 and Article 15 of the Operating
Agreement), in practice the Cable & Wireless Group deals
with INTELSAT directly in these matters with the exception
of the final applications which are submitted through the
Signatory as a matter of formality.
Benefits
14.
The external communications of Hong Kong rely on
channels provided by cables,
microwave
radio,
high-frequency radio and communications satellites.
INTELSAT satellites play a significant role in connecting
Hong Kong with the rest of the world.
substantial
of external telecommunications to
volume of the traffic of external
and from Hong Kong is routed through the channels provided
INTELSAT. (As of March 1989, 3,969 voice grade
by