CONFIDENTIAL
:
EXHIBIT 7
COMPARISON OF CHARGES FOR LOCAL VOICE SERVICE* - 1991 US$/year
ESTIMATE
RESIDENTIAL
Hong Kong (HKT)
$100
Singapore (ST)
128
Taiwan (DGT)
204
US (RBOC average)
348
Australia (TA)
UK (BT)***
Japan (NTT)
480
501
937
BUSINESS**
$133
271
519
523
854
1,085
* Includes connection charge spread out over 3 years, and yearly line rental and call charges at Hong Kong usage rate of
25 minutes per day; tax not included
AA
Based on number of work days in Hong Kong
***
Call charges for residental users significantly lower than for business users as residential users make more calls during off-peak hours, when cost is lowest
Source: Telcos; McKinsey analysis
McKinsey & Company, Inc.
CONFIDENTIAL