TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 147

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Sir, before explaining the underlying

principles governing the determination of these new

thanks to

charges, I would like to express my

Mr Francis Tien and his Unofficial colleagues on the

Economic Services Working Group for the time and effort

they have spent on the matter and for the helpful and

constructive suggestions they have made. The Group held

two meetings with the Administration. We agreed that

because the public mobile radiotelephone service is new

Hong Kong, it is desirable that a review of charges should

be conducted twelve months after the service provided by

the three licensees has come into operation.

to

4.

Interconnection

charges should be levied on the

each

basis that there will be no significant cross-subsidization

between the Telephone Company's various services; and the

charges should as far as possible reflect the cost of

providing the use of the public telephone system to

type of subscriber. Thus, the interconnection charges

should comprise first, a fixed rental component to cover

the capital cost of the interconnection line, and

installation and maintenance costs; and second, a usage

charge component to cover the average cost of switching and

junction circuits. There is included the appropriate

permitted return under the Scheme of Control.

15.

These

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