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"Our fully digitised telephone system and comprehensive optical fibre network are among the most advanced in the world," he said.
He noted that competition brought about through the deregulation of local fixed network services in July last year would bring investment of more than $32 billion over the next 10 years from new operators.
He said:"We shall continue to discuss with the Chinese side our proposal to license new mobile communications services to relieve congestion in the existing
networks.
"We need to increase our capacity to meet the strong local demand for mobile phone services".
The Government would continue to pursue a pro-competition policy in telecommunications which had already reduced the real cost of domestic line rentals by 32 per cent over the last 10 years and of international calls by up to 75 per cent, Mr Tsang said.
End
No slip-up in language skills
The Financial Secretary, Mr Donald Tsang, said Hong Kong would not be able to maintain its position as an international centre for trade and finance if it allowed its language skills to slip.
He said: "We need English for much of our international trade and financial services. We need Putonghua for our Chinese future."
The Education Commission Report No. 6 (ECR6) had made a convincing case on the urgent need to improve Hong Kong's language skills, Mr Tsang said.
Funds in the Draft Estimates of $14.2 million, rising to $29.1 million on a full- year basis, had been earmarked for this purpose, and would enable the recruitment of some 100 native English-speaking teachers for the schools and the organisation of intensive English language courses for an additional 11,300 Secondary Six and Seven
students.