XN000022-1994-04-29 — Page 7

FRIDAY, APRIL 29, 1994

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AT LUNCHTIME SHE WILL GIVE A KEYNOTE SOCIETY ON "HONG KONG AS AMERICA'S GATEWAY ΤΟ AND THEN RETURN TO WASHINGTON DC FOR AN EARLY VICE-PRESIDENT AL GORE.

SPEECH AT THE ASIA THE PACIFIC CENTURY" EVENING MEETING WITH

IN ADDITION TO DISCUSSIONS CONCERNING MFN RENEWAL FOR CHINA, THE FOCUS OF THE NEW YORK LEG OF MRS CHAN'S VISIT WILL BE ON FURTHER STRENGTHENING THE ECONOMIC AND SOCIAL LINKS BETWEEN HONG KONG AND THE

U.S.

REPORT ON PRICING AND CONNECTION OF MOBILE PHONE HANDSETS * * * * *

THE OFFICE OF THE TELECOMMUNICATIONS AUTHORITY (OFTA) (FRIDAY) ISSUED A REPORT ON THE PRICING AND CONNECTION OF PHONE HANDSETS.

TODAY

MOBILE

"THE REPORT IS THE RESULT OF OUR EFFORTS TO ADDRESS SOME PUBLIC CONCERN ABOUT THE PRICES OF MOBILE PHONE HANDSETS AND THE DIFFICULTY TO CONNECT SELF-PROVIDED HANDSETS TO THE MOBILE PHONE NETWORKS IN HONG KONG," THE DIRECTOR-GENERAL OF TELECOMMUNICATIONS, MR ALEX ARENA, SAID.

THE REPORT SETS OUT THE FOLLOWING MAJOR FINDINGS AND CONCLUSIONS:

* THERE IS A WIDE RANGE OF MOBILE PHONES AVAILABLE IN HONG KONG

AT A WIDE RANGE OF PRICES;

* PRICES OF MOBILE PHONES ARE VERY VOLATILE AND HAVE DROPPED SIGNIFICANTLY IN THE LAST FEW MONTHS, TYPICALLY BY 20 PER CENT TO 30 PER CENT AND MUCH MORE FOR CERTAIN MODELS;

* IT IS NOT STRICTLY RELEVANT TO DRAW COMPARISONS BETWEEN MOBILE PHONE PRICES IN HONG KONG AND OTHER PLACES DUE ΤΟ DIFFERENT MARKET AND REGULATORY ENVIRONMENTS AND DIFFERENT RETAIL COST STRUCTURE;

* MOBILE NETWORK OPERATORS ARE REQUIRED ΤΟ CONNECT HANDSETS PROVIDED BY CUSTOMERS TO THEIR NETWORKS IRRESPECTIVE OF WHETHER THE HANDSET IS PURCHASED FROM OVERSEAS OR FROM SOURCES OTHER THAN THE AUTHORISED DEALERS OF THE NETWORK OPERATORS;

* OFTA CONSIDERED THAT THE NETWORK OPERATORS HAD BEEN CHARGING TOO HIGH A CONNECTION FEE FOR HANDSETS PROVIDED BY CUSTOMERS AS COMPARED TO THE COSTS OF PROVIDING CONNECTION;

* AFTER DISCUSSION WITH THE NETWORK OPERATORS, THE CONNECTION FEES FOR ALL THE MOBILE NETWORKS HAVE NOW BEEN SUBSTANTIALLY REDUCED.

"I AM PLEASED TO SEE THAT ALL MOBILE OPERATORS HAVE LOWER THEIR CONNECTION FEES SUBSTANTIALLY, THIS REPRESENTS ENHANCEMENT OF CONSUMER INTERESTS,

* MR ARENA SAID.

AGREED

TO

A MAJOR

/"TO IMPROVE

•