CONFIDENTIAL
HONG KONG'S TELECOMMUNICATIONS AND BROADCASTING POLICIES
Voice Telecommunications
1. The main exclusive telecommunications franchises are
held by the Hong Kong Telephone Company (HK Telco) and Hong Kong Telecom International (HKTI). The two companies are
both subsidiaries of Hong Kong Telecommunications Limited
(HK Telecom). Telco's franchise covers the local wired
voice telephone service and expires in 1995. HKTI's
franchise covers a wide range of international services,
including the international telephone service, and is not
due to expire until 2006.
2.
-
the
The Hong Kong Government have employed the Consultants
Booz Allen to consider the options. HKG have concluded on the basis of the Consultants' Report that Hong Kong's public interest clearly lies in joining the worldwide move to
liberalisation of all telecommunications services. The
Executive Council have recognised that public pressure to break HKTI's franchise before 2006 will be very strong
platform of the United Democrats of Hong Kong states that
they will press for this. However, the Executive Council
has also concluded that it would not be right in principle
to break unilaterally the franchise so long as the service
remained good (which is generally accepted to be the case)
and prices were reduced in line with actual costs.
Currently there is a considerable subsidy of Hong Kong's
local telephone network from the international network.
this could be reduced in stages.
3.
But
The Executive Council have therefore concluded that the
policy should initially be:
a) A reduction in international charges so that a fair part
of the benefits of cost reduction is passed onto the
RODAIH/1
TG
CONFIDENTIAL