EXHIBIT 5.12 ECONOMIES OF SCALE IN INTERNATIONAL TELECOMMUNICATIONS NETWORK
Net Present Value (in 1988) of costs to the year 2007; service commencing in 1995.
Marketing
Billing
HK$ 383 million
10
7
Earth Station
Equipment & Site
113
0%
scale
=
Economies of
HK$145 m
(38%)
Technical and
Operations Staff
86
HK$238 million
85%
73
Maintenance
25
90%
23
Cable IRUS
70
70
100%
Switch
72
72
Costs of providing access to second international network (Incremental costs of Scenario 5 over Scenario 4)
Costs of serving same incremental international traffic on existing network
- 139 -
No comments yet.
Private notes are available after approval.