TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 232

EXHIBIT 5.9 BENEFITS OF TELECOMMUNICATIONS COMPETITION: SENSITIVITY TO

DIFFERENT DATES OF SERVICE COMMENCEMENT

Net Present Value (in 1988) of user benefits to the year 2007.

YEAR OF COMMENCEMENT OF LOCAL VOICE SERVICE

1990

$ 7,581 m

1995

$ 6,917 m

1995

$ 2,100 m

$ 1,600 m

YEAR OF

COMMENCEMENT

$ 6,463 m

$5,797 m

OF INTERNATIONAL

2000

$ 2,000 m

SERVICE

$ 1,500 m

2006

$4,245 m

$3,579 m

$ 1,717 m

$ 1,428 m

Benefits arising from competition (assuming 15% efficiency improvement)

Incremental costs incurred by operating separate networks

Note: Only the option represented in the lowest right hand box (Inland voice service from

1995, international service from 2006 ) is consistent with the existing franchises of the Hong Kong Telephone Company and Cable & Wireless (Hong Kong) Ltd.

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