TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 318

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This gives the advantage of economies of scale which benefit all users. The price for usage of the network is, of course, controlled and regulated by Government. A second network supplier would have to disrupt the already congested roads and pavements while digging a trench equivalent in length to the distance from the Star Ferry in Hong Kong to Tiananmen Square in Beijing. The Government are currently considering the consultants' findings.

The involvement of the Cable and Wireless Group in China has largely arisen as a result of the Group's operations in Hong Kong. Responsibility for providing the Hong Kong end of communication links with China has meant that Cable and Wireless has a common interest with the Ministry of Posts and Telecommunications and a number of provincial telecommunications authorities. In furthering this common interest, a number of joint projects has been undertaken, particularly in Guangdong Province. These have included microwave and optical fibre systems connecting Hong Kong to Shenzhen SEZ, Guangzhou and other major cities in the Guangdong Province. In all, over 1,000 miles of microwave systems have been completed as joint projects and a few hundred miles of optical fibre links are due to be commissioned this year. At the end of 1981, Cable and Wireless took on the responsibility for the operation of all telecommunications services in Macau. The network and services there

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have now been brought up to the best international standards with that in Hong Kong. Similar joint projects have improved links between Macau and the Mainland China telephone systems.

Of particular interest to Cable and Wireless has been the introduction of subscriber dialling between Hong Kong and China. In 1983, all calls were manually connected; now, direct dialling is possible between Hong Kong and over 70 cities in China. The total Hong Kong/China telephone traffic is now 150 times that in 1983, and 80% of it is currently with Guangdong Province. More recently, we have been encouraged by the Ministry to help with developments in other areas which have a community of interest with Hong Kong like Shanghai, the Yangtze Delta Provinces and Tianjin. We hope to see high growth in these areas as a result.

As a result of the very close relationship between Cable and Wireless and the PRC telecommunications authorities, two joint ventures were established during 1983. These are the only telecommunications service joint ventures in China and are now entirely managed by PRC staff one to provide the off-shore oil industry in the South China Sea with a high quality telecommunications network and the other, Shenda Telephone Company, to provide telephone service in the Shenzhen SEZ. Shenzhen now has a very high level of telephone service, with 10 telephones per 100 population, compared with less than 1 per 100 for the rest of China. Hong Kong's telephone traffic with Shenda alone is nearly 25% of the total of the whole of China.

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