4.
6
The Hong Kong Business
4.1 Cable and Wireless (H.K.) and the Hong Kong Telephone Company both began business in the territory over one hundred years ago. They have made a significant contribution to establishing Hong Kong's position as a major world trading and commercial centre, and there is little doubt that Hong
Hong Kong's excellent telecommunication facilities continue to be a key factor in persuading new business enterprises to establish themselves in the territory. Their facilities compare favourably with any other location in the world and stand above most others as regards quality/efficiency of service and value for money as reflected through tariffs. They remain constantly alert that in a regional context, Hong Kong maintains its competitiveness for international tariffs.
4.2
4.3
Cable and Wireless (H.K.)
This Company is owned 80% by the Cable and Wireless Group and 20% by Hong Kong Government (through the Exchange Fund). It operates under a licence, expiring in 2005, to provide all of Hong Kong's international services and pays a royalty to Government on revenue derived from these services. A substantial amount of CWHK' $ investments are made 'off-shore' in the ownership of submarine cable systems. Other major land-based assets include the earth satellite complex at Stanley currently comprising four antennae and soon to be expanded to five.
Hong Kong Telephone
the Hong
The Hong Kong Telephone Company is publicly quoted on Kong Stock Exchange with approximately 21% of its equity being held by 14500 shareholders. The remainder is owned by the Cable and Wireless Group. Hong Kong Telephone's basic business operates under a Scheme of Control which restricts profits to a 16% return on Shareholders Funds. The Company's main business is also subject to the Telephone Ordinance which is a somewhat outdated piece of legislation that does not reflect current technology nor the expectations of HKT's customers. Despite the Ordinance being outdated in many aspects, it also obliges the Telephone Company to provide the latest technology.
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