TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 276

For Information (15.3.88)

ANNEX III TO XCC(88)97

XCCI(88)13 Copy No

INFORMATION NOTE FOR EXECUTIVE COUNCIL

TELECOMMUNICATIONS CONSULTANCY

I

INTRODUCTION

At Annex I I is

is the executive summary of the recently completed study on telecommunications development in Hong Kong. This memorandum informs Members of the manner in which the Administration

proposes to deal with the consultants report.

BACKGROUND"

2

on 7

Following discussion of memorandum XCC (87)102 July 1987,

1987, Members advised and the Governor ordered, inter alia, that consultants be engaged to give advice on the issues raised therein. In particular, an

assessment was required of the effects of introducing public telecommunications network competition including the likely degree of disruption and the impact on telephone tariffs.

In addition, the Council directed that the consultants be asked to evaluate the views of the Hong Kong Telephone Company (Telco) and Hutchison CableVision (HCV) on the case for and against a second public telecommunications network.

Current Position

3

In accordance with this decision, the consultancy firm Booz, Allen and Hamilton was engaged to undertake the study. The consultants have now submitted their report. It is proposed that this report should be sent to Hong Kong Telecommunications

Ltd., (Telco's newly listed holding company) and

and HCV for comment. Telco and HCV have been the main protagonists in the

the debate over the desirability of a second telecommunications network and their views were sought during the consultancy exercise as directed by Members. Their comments on the report are required to ensure that the report has represented their views fairly and to enable the Administration's recommendations on the findings of the report to be made with the benefit of the companies views on those

findings.