TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 175

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SOSS:

OSS:

EXHIBIT 3.1 EVOLUTIONARY PATH OF ALTERNATIVE FUTURE SCENARIOS

TIME

HONG KONG TELEPHONE CO (HKT)

HKT:

SCENARIO 2

Domestic Telephony

SOSS:

Cable network operation and programming only

LIMITED COMPETITION

SCENARIO 1

HKT:

SCENARIO 3

Domestic Basic Telephony

HKT:

Single Network operator

SOSS:

for telephony and cable

Cable network operation and other non-franchised services

OSS:

Programming and non

programming cable services

HKT

SCENARIO 4

Inland Telephony and

&

Cable Operation

SOSS

PARTIAL COMPETITION

Single Other Service Provider

Other Service Suppliers

SCENARIO 5

Full Competition

All Inland and International Services

FULL

COMPETITION

SOSS:

OSS:

Single Other Service Provider Other Service Suppliers