ternal licence is due to expire in 1995 and the external
licence in 2006. Hong Kong Telecom imports significant amounts
of British equipment, including satellite earth station
equipment, broadcasting towers, fibre-optic cables and pay
telephones. It is the private sector's largest employer with
approximately 17,000 staff and is the largest company listed on
the Hong Kong Stock Exchange. As well as Cable and Wireless,
major shareholders include CITIC (an external agency of the
Chinese Government, with a 20% stake) and the Guangdong Posts and
Telecommunications Bureau (1%). It represents one of Britain's
biggest investments in Hong Kong and Hong Kong's contribution to
the world wide profits of Cable and Wireless represents a very
high proportion of the whole.
There has been growing pressure from some quarters in Hong Kong
for a break up of Cable & Wireless' monopoly position.
The US,
who are very successful in the overall Hong Kong market, have been.
particularly active with American Telephone and Telegraph for
example threatening to move to other Asian centres unless the
Hong Kong Government accedes to competition.
There have been two recent developments of note. Firstly, the US
and Hong Kong Governments have signed an agreement concerning the
liberalisation of the use of internal leasing circuits. Although
Cable and Wireless do not see this as a major threat, they
regard it as a small move towards deregulating the
telecommunications market.