CONFIDENTIAL COMMERCIAL-IN-CONFIDENCE
051210
MDHIAN 7781
MKC are also
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Da MKTI вал
inverfiond tamrit's
WIRELESS GROUP HAVE ALSO ENCOURAGED HKTI TO MAINTAIN HIGH ACCOUNTING RATES FOR SERVICE WITH THE UK.
ALL PREVIOUS EFFORTS
TO REDUCE THE RATE FROM ITS 1977 LEVEL OF 1.66 SDR HAD BEEN BLOCKED. WE HAVE FINALLY PERSUADED HKTI TO AGREE TO A PHASED REDUCTION (1.60 SDR FROM 1.4.91 FALLING TO 0.80 SDR FROM 1.4.94), BUT THIS COMPARES UNFAVOURABLY WITH THE RATES BT (AND MERCURY) ALREADY HAVE IN PLACE ON OTHER MAJOR ROUTES: 0.68 SDR WITH USA, 0.70 SDR WITH AUSTRALIA, 1.00 SDR WITH SINGAPORE.
IT WOULD BE HELPFUL IF THIS PROBLEM COULD BE RAISED AND THE HONG KONG GOVERNMENT BE INVITED TO ENCOURAGE HKTI TO CONFORM TO NORMAL INTERNATIONAL PRACTICES AND TO AGREE TO LOWER ACCOUNTING RATES, IN THE ABSENCE OF COMPETITION AS A MORE PERMANENT MEANS
OF BRINGING DISCIPLINE TO BEAR.
2
CELLULAR LICENCE
FOR DTI INFORMATION ONLY
BT HAS BEEN CONSIDERING AN OPPORTUNITY TO ACQUIRE A STAKE IN ONE OF HONG KONG'S ANALOGUE CELLULAR LICENSEES, PACIFIC LINK COMMUNICATIONS, FOLLOWING THE WITHDRAWAL OF MILLICOM. HOWEVER, IT HAS NOT PROVED POSSIBLE SO FAR TO REACH AN ACCEPTABLE COMMERCIAL AGREEMENT WITH THE REMAINING MAJOR SHAREHOLDER. FIRST PACIFIC, AND AT PRESENT IT SEEMS UNLIKELY THAT BT WILL TAKE A STAKE. BT REMAINS INTERESTED IN THE HONG KONG MOBILE
MARKET.
3
TELEPOINT
BT HAS A 45PERCENT STAKE IN PERSONAL COMMUNICATIONS LTD (PCL), ONE OF 4 GROUPS LICENSED EARLIER THIS YEAR TO PROVIDE TELEPOINT SERVICES IN HONG KONG. ALTHOUGH PHONEPOINT HAS SUSPENDED OPERATIONS IN THE UK, BT REMAINS STRONGLY COMMITTED TO PCL IN HONG KONG. BT BELIEVES THAT TELEPOINT SERVICES ARE IDEALLY SUITED TO THE HONG KONG MARKET, AND HONG KONG HAS THE POTENTIAL TO BECOME THE MAJOR TESTBED FOR THE FURTHER DEVELOPMENT OF THESE
SERVICES AROUND THE WORLD.
IT WOULD BE HELPFUL IF THE HONG KONG GOVERNMENT COULD BE REASSURED ON THIS POINT.
END OF BT BRIEF.