XN000022-1993-02-01 — Page 3

2

MONDAY, FEBRUARY 1, 1993

THE

ADDITIONAL LOCAL FIXED TELECOMMUNICATION NETWORKS

* *

POSTMASTER GENERAL AND TELECOMMUNICATIONS AUTHORITY, MR M PAGLIARI, ANNOUNCED TODAY (MONDAY) THAT SEVEN PROPOSALS HAD BEEN RECEIVED FROM CONSORTIA WITH BOTH LOCAL AND OVERSEAS INTERESTS FOR THE OPERATION OF THE NEW FIXED TELECOMMUNICATION NETWORK SERVICES IN HONG KONG.

INDUSTRY.

FIXED

"WE ARE SATISFIED WITH THE RESPONSE FROM THE TELECOMMUNICATION

THE CONSTRUCTION AND OPERATION OF NEW TELECOMMUNICATION NETWORKS ARE LARGE-SCALE INFRASTRUCTURE PROJECTS WHICH REQUIRE LONG-TERM COMMITMENT FROM INVESTORS.

"THIS SHOWS THAT THEY HAVE CONFIDENCE IN THE MARKET POTENTIAL AND THE FUTURE OF HONG KONG," MR PAGLIARI SAID.

SET

A

"THE PROPOSALS RECEIVED WILL BE EVALUATED CAREFULLY AGAINST OF CRITERIA INCLUDING FINANCIAL SOUNDNESS AND INVESTMENT, TECHNICAL SOUNDNESS, MANAGERIAL AND TECHNICAL EXPERTISE, TECHNOLOGICAL INNOVATION, NEW SERVICES TO BE OFFERED, CUSTOMER SERVICES AND CHARGES, IMPLEMENTATION PLAN, MINIMISATION OF DISRUPTION TO TRAFFIC, ETC."

A FORMAL ANNOUNCEMENT OF THE SUCCESSFUL APPLICANT(S) EXPECTED TO BE MADE IN THE MIDDLE OF THIS YEAR, HE SAID.

THE GOVERNMENT HAS ADOPTED A MARKET-DRIVEN LICENSING THE NEW NETWORK OPERATORS.

IS

APPROACH IN

BE

'IN MAKING A DECISION ON THE NUMBER OF NEW LICENCES ΤΟ GRANTED IN THIS EXERCISE, WE WILL HAVE REGARD TO THE TYPES OF SERVICES PROPOSED BY THE CONSORTIA, THE FINDINGS OF MARKET AND ECONOMIC STUDIES CONDUCTED BY THEM AND OUR ASSESSMENT OF THE MARKET, TECHNICAL AND ENVIRONMENTAL CONSTRAINTS,' MR PAGLIARI SAID.

IN

"

SEPTEMBER LAST YEAR THE TELECOMMUNICATIONS AUTHORITY PUBLISHED A NOTICE IN THE GAZETTE INVITING INTERESTED PARTIES ΤΟ SUBMIT PROPOSALS TO THE GOVERNMENT TO PROVIDE AND OPERATE ADDITIONAL LOCAL FIXED NETWORK SERVICES IN HONG KONG.

THE INVITATION FOLLOWS THE GOVERNMENT'S POLICY TO LIBERALISE LOCAL FIXED NETWORK SERVICES.

AT PRESENT, HONG KONG TELEPHONE COMPANY (HKTC) HAS AN EXCLUSIVE FRANCHISE UNDER THE TELEPHONE ORDINANCE TO PROVIDE LOCAL VOICE TELEPHONE SERVICE.

THE GOVERNMENT HAS ANNOUNCED THAT THE FRANCHISE WOULD NOT BE RENEWED WHEN IT EXPIRES IN JUNE 1995 BUT WOULD BE REPLACED BY A NON- EXCLUSIVE LICENCE.

ONE OR MORE ADDITIONAL LOCAL FIXED NETWORK SERVICE OPERATORS WILL BE LICENSED ΤΟ COMPETE WITH HKTC ON THE PROVISION OF NON- FRANCHISED SERVICES (SUCH AS DATA AND PAX) BEFORE JUNE 1995, AND LOCAL VOICE TELEPHONE SERVICES THEREAFTER.

0

/3