XN000022-1993-11-30 — Page 4

TUESDAY, NOVEMBER 30, 1993

JOINT LIAISON GROUP MEETING

THE FOREIGN AND COMMONWEALTH OFFICE ANNOUNCED THIS MORNING THAT TWENTY-EIGHTH MEETING OF THE SINO-BRITISH JOINT LIAISON GROUP ON HONG KONG WILL TAKE PLACE IN LONDON FROM DECEMBER 7 TO 9.

THE

THE BRITISH TEAM WILL BE LED BY THE SENIOR REPRESENTATIVE, HUGH DAVIES.

MR

THE OTHER MEMBERS OF THE BRITISH TEAM WILL BE MR ALAN PAUL (COUNSELLOR, OFFICE OF THE BRITISH SENIOR REPRESENTATIVE, SINO-BRITISH JOINT LIAISON GROUP, HONG KONG), MR ROBERT PEIRCE (POLITICAL ADVISER, HONG KONG), AND MR PETER RICKETTS (HEAD OF HONG KONG DEPARTMENT IN THE FOREIGN AND COMMONWEALTH OFFICE),

TELEPHONE COMPETITION ON THE WAY

THE SECRETARY FOR ECONOMIC SERVICES, MR GORDON SIU, ANNOUNCED TODAY (TUESDAY) THAT THE GOVERNMENT WOULD SHORTLY LICENSE THREE NEW COMPETITIVE FIXED TELECOMS NETWORKS, MARKING AN IMPORTANT NEW STAGE IN THE IMPLEMENTATION OF GOVERNMENT'S PRO-COMPETITION TELECOMS POLICY.

"I AM PLEASED TO SEE THE SUCCESSFUL OUTCOME OF THE LICENSING EXERCISE OF FIXED TELECOMMUNICATION NETWORK SERVICES (FTNS) WHICH WILL BRING SUBSTANTIAL BENEFITS TO BOTH CONSUMERS AND THE BUSINESS SECTOR IN HONG KONG.

"IT IS A VOTE OF CONFIDENCE IN HONG KONG'S FUTURE AND IN ITS TELECOMMUNICATIONS POLICY. IT WOULD SIGNIFICANTLY ENHANCE HONG KONG'S POSITION AS A FINANCIAL AND BUSINESS CENTRE IN THIS PART OF THE WORLD, MR SIU SAID.

WOULD

"

IN ACCORDANCE WITH THE GOVERNMENT'S LIBERALISATION POLICY, THE TELECOMMUNICATIONS AUTHORITY, MR ALEXANDER ARENA, ANNOUNCED THAT HE BE PREPARED ΤΟ AWARD FTNS LICENCE TO THREE SUCCESSFUL APPLICANTS: IN ALPHABETICAL ORDER, HUTCHISON COMMUNICATIONS LTD, NEW T&T HONG KONG LTD AND NEW WORLD TELEPHONE LTD, SUBJECT TO FINALISATION OF THE TERMS OF THE LICENCES AND CONSULTATION WITH THE CHINESE GOVERNMENT AS THE LICENCES WILL SPAN 1997.

THE TELECOMMUNICATIONS AUTHORITY HAS BASED THE AWARD OF LICENCES ON THE RECOMMENDATIONS OF AN INTER-DEPARTMENTAL WORKING GROUP, INVOLVING THE OFFICE OF THE TELECOMMUNICATIONS AUTHORITY, THE ECONOMIC SERVICES BRANCH, THE FINANCIAL SERVICES BRANCH, THE FINANCIAL MONITORING UNIT AND THE INDEPENDENT COMMISSION AGAINST CORRUPTION.

AND

ARTHUR D LITTLE, A CONSULTANCY FIRM, HAD ALSO BEEN COMMISSIONED TO ASSIST IN ASSESSING THE FUTURE FIXED NETWORK MARKET STRUCTURE, ESTABLISHED THAT THE HONG KONG MARKET COULD SUPPORT THREE NEW LOCAL FIXED TELECOM NETWORKS.

IN

AD LITTLE PROJECTED THAT THE TOTAL MARKET SIZE WOULD DOUBLE REAL TERMS OVER THE NEXT 10 YEARS FROM THE CURRENT $7 BILLION TO ABOUT $14 BILLION, OR $28 BILLION IN PRICE OF THE DAY.

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/MR ARENA