relating to the supply of customer premises equipment (CPE) and value added network services (VANS) such as advanced data communications facilities. The arguments put forward in favour of deregulation, and indeed the results achieved to date, are similar to those in other countries. There has been a proliferation in the range, diversity and enhancements added to new products. Even HKT has favoured and proposed competition for CPE and VANS on the basis that this would increase their overall business sales, provide a wider range of choice for consumers, and enable prices to be set according to market forces rather than regulated by the Government.
12.
The forecasts for the future indicate that there will be a very high rate of growth in international and value added services and that Hong Kong will have a special role to play as a regional centre offering services to other parts of Asia and China. Hong Kong's success as a financial, trading, tourism and manufacturing centre will be critically dependent on its ability to communicate quickly and efficiently with its partners.
THE OPTIONS FOR ADDITIONAL NETWORK DEVELOPMENT
13.
The study evaluated five options, or scenarios, for the development of telecommunications and cable television services over the next twenty years. Scenario 1 provides for a continuation of the HKT monopoly in local communications infrastructure; cable television services would be provided over a cable network to be constructed by HKT. Scenarios 2 to 5 provide for the construction of a separate cable television network by a company other than HKT, and for varying degrees of competition with HKT's existing services. In detail, the scenarios are as follows:
SCENARIO 1
Single network carrier for telecommunications and cable television with the same or a separate operator of cable services
SCENARIO 2
Two networks: one for cable television but not for telecommunications or non-franchised services, the other for telecommunications but not cable television
SCENARIO 3
Two networks: one offering cable television and non-franchised services, the other offering all telecommunications services but not cable television
SCENARIO 4
Two networks: one offering cable television and all local telecommunications services, with interconnection to both local and international carriers, the other offering all telecommunications services but not cable television
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