TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 41

Ι

For decision

on 5 July 1988

THE PROBLEM

CONFIDENTIAL

XCC (88) 97 Copy No

MEMORANDUM FOR EXECUTIVE COUNCIL

TELECOMMUNICATIONS DEVELOPMENT

IN HONG KONG

PA 8 THKC 191

781/1

RECEIVED IN REGISTRY

7 JUL 1988

DESK OFFICES..

INDEX

REGISTRY

rion Teken

On 7 XCC (87) 102 (a advised and the Governor ordered

July 1987, following discussion of memorandum copy of which is at Annex I), the Council

2

(a) that the case for a second public telecommunications network for services outside Telco's exclusive franchise should be further examined;

(b)

that both Hong Kong Telephone Company and Hutchison CableVision should be invited to put forward more detailed views for and against a second public telecommunications network;

(c) that in order to further the examination under (a), independent consultants should be engaged to give technical advice to the Administration on the issues raised by the paper, including an assessment of the effect of introducing competition, the programme for the development of cable TV services, the likely degree of disruption, any effect on the telephone tariff and interconnection, and to evaluate the views of the two companies sought under (b); and

(d)

that a further submission to the Council should then be made in the light of the consultants' advice, reflecting the responses of the two companies, and on the basis of an assessment of those responses, seeking Members' advice on whether

telecommunications:

network

a second should be

introduced to carry a cable TV compete with the telephone deregulated services, and if regulatory framework to be adopted.

service service and

company

on

so, the basic

The consultancy firm Booz, Allen and Hamilton (BAH) was engaged in September 1987 to undertake the required study. Both Hong Kong Telephone Company (Telco) and Hutchison CableVision (HCV) were invited to make a detailed

CONFIDENTIAL