3
G
Competing networks the impact (contd.)
To provide a second network Hong Kong would have to contemplate the digging up of roads and pavements in order to reach subscriber premises
economic cost but one that is completely unnecessary.
In
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an unmeasurable
summary
the fundamental reasons for moving to a second network in countries such as the UK do not exist in Hong Kong. The Hong Kong Telephone Company is efficient, well managed and has competitive prices. None of the factors could be attributed to, for example, BT in the UK at the time that the UK Government determined that competition was needed to bring about these very qualities.
A second network would only produce higher domestic telephone charges, damage Cable & Wireless and seriously affect its ability to continue its current role in China.
Future policy
Cable & Wireless believe that it is in Hong Kong's best interest to continue with a single telecommunications network policy under the current regulatory environment and to proceed to the writing of telecommunications legislation which will enable greater exploitation of this unique asset by all parties interested in providing service over it.
The Cable & Wireless Group is not opposed to competition in telecommunications and has since 1982 been a prime mover in the deregulation of services on the Hong Kong Telephone Company network. It would, however, be opposed to any form of competition which was not in the best interests of Hong Kong. Hong Kong's telecommunications network is a unique asset extending to practically every home in the territory via a system of ducts. It is capable of providing, in an orderly manner, the necessary telecommunications capacity for any new service including cable television.
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Whoever wins the cable television franchise should be required to use the Hong Kong Telephone Company network for distribution of their service to Hong Kong's homes. Because a network of ducts already exists this will ultimately be the cheapest form of distribution. The more persons who provide services over the telecommunications network the better able is the Hong Kong Telephone Company to
to continue providing an economic service to its basic telephone
subscribers.
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