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4
A
13
Condition (d) was complied with. Because under the revised corporate structure the Telco subsidiaries will become subsidiaries of HongKongTelecom this condition is no longer - required (a diagram showing the former and future structures is
at Annex A).
14
It is not considered necessary ΟΙ appropriate to retain condition (e). Since 1983 several companies not related to the Telco group have begun to provide competitive services. The competitive environment has resulted in customers enjoying services and equipment which are technologically up-to-date and has stimulated the provision of a wide range of services not envisaged in 1983. It is considered that competition in these services has worked well and that there
is no case for regulation. Condition (e) has never been invoked and is, in the present situation inappropriate. It cannot apply to those services provided by companies which are not subsidiary companies of Telco (or of Hong Kong Telecom) and it
it would be contrary to the principle of competition to impose a
condition Hong Kong Telecom and its subsidiaries but not on their competitors.
on
Hong Kong Telecom
15
The setting up of the Hong Kong Telecom group involving the acquisition by that company of the interests of Telco and CWHK required the agreement of the Financial Secretary Incorporated as the Exchange Fund was a minority shareholder in
CWHK.
16
In negotiating details of the re-organisation which were reported to Members on 3 November 1987, the Administration requested that in addition to preserving the regulatory framework provided by
by the
the scheme of control agreement with Telco and the licence granted to Telco and CWHK, Telco should become a separate subsidiary of the new company, retaining its existing responsibilities for the provision of its exclusive services. At the same time, Telco would continue to be subject to Government control in the provision of such services. This was to facilitate the monitoring of Telco's activities in the new corporate structure. The other parties involved in the re-organisation acceded this request and agreed that the
subsidiaries and associates of Telco would be separated Telco in the new group structure.
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