TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 77

EXHIBIT 5.2 ECONOMIES OF INTEGRATION (1): COMBINING CABLE TV NETWORK WITH MAIN TELECOMMUNICATIONS NETWORK

Net Present Value (in 1988) of costs to the year 2007; service commencing in 1991 and connecting 930,000 lines by 2007.

HK$ 2,470

million

Fibre Network

46

35%

Electronics (horiz- 62

124%

Economies of

ontal network)

HK$2,025

million

integration - HK$445m (18%)

Cable ducting

528

35%

+

(horizontal

16

77

network)

187

Maintenance

219

59%

130

Cable (vertical)

270

270

Electronics

260

(vertical)

Consumer

98

260

98

electronics

Technical staff

987

100%

987

Costs of separate cable TV network (Scenario 2)

Costs of cable TV network integrated with main telecoms network (Scenario 1)

100

109