EXHIBIT 5.3 ECONOMIES OF INTEGRATION (2) : COMBINING SECOND TELECOMMUNICATIONS
NETWORK WITH CABLE TV NETWORK
Net Present Value (in 1988) of costs to the year 2007; voice telecommunications service commencing in 1995 and connecting 410,000 lines by 2007.
HK$ 1,140
HK$1,095
million
million
Economies of
Hub Sites
23
0%
Fibre Network
42
43%
18
integration = HK$47m (4%)
Billing System
27
27
Service Centre
20
20
Marketing
32
32
Billing Operations
7
7
Fixed Cost per
83
83
Customer Premise
Technical Staff
275
275
100%
Maintenance
96
96
Service
Operations
42
42
Switching
172
172
Variable Costs
321
relating to
customer
premises
Costs of second telecoms network, not based on cable TV
321
Incremental costs of second telecoms network, once cable TV network is operational
110
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