TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 15

Meetings have been held with representatives of both Telco and HCV and their views have been reflected

reflected in this memorandum. Expert advice has also been sought from the U.K. Office of Telecommunications.

Financial and staffing implications

36

The main financial implication of the proposals relates to the appointment of consultants. Informal enquiries by the Postmaster General suggest that a consultancy which takes between three and six months could cost approximately $2.8 million, excluding travelling and accommodation expenses. As the remit of the consultants, as generally postulated in paragraph 34 above, will need to be more clearly defined, this figure can only serve as a guide.

37

It is not possible to assess at this stage the staffing requirement, as much would depend on the telecommunications arrangements finally chosen. A preliminary review by the Postmaster General indicates that no more than 8 additional staff should be required.

required. Any staffing requirement would be processed in the normal manner.

Public reaction

38

In view of the widespread media coverage

coverage that has already been given to the proposal to introduce cable television and related telecommunications issues, there is likely to be considerable public interest in any announcement on the future development of telecommunications services in Hong Kong. The business community is expected to welcome the Administration's stand on the grounds that increased but regulated competition in the field

telecommunications

of

should result in cost and service benefits. The general public is likely to be

be concerned over any implications of higher telephone tariffs and to a lesser extent over possible inconvenience on the roads. However, the Administration's decision to consult further with Telco and HCV before coming to a final view is likely to be seen as a reassuring move.

Publicity

39

A press release will be issued stating that following consultation with the Executive Council, the Government has decided that further consultations with the two main contenders for the provision of cable television will be necessary before a final decision is

is taken on whether Hong Kong should have a second telecommunications network. This is a complex matter with far reaching implications and the Government believes that full and careful consideration should