TNAG-1986-FCO40-2819-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 137

1500

1000

500

Figure I-13

Forecast Total Revenues from Telecommunications Services

Scenario

Scenario

Scenario

НКСС

1 (HCV)

2 (HCV)

3 (HCV)

Projected Telecommunications Revenues (HK$ M)

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: HCV proposal

Year

HCV expects breakeven to occur in 2003 for Scenario 1, and 1996 for each of Scenarios 2 and 3. Cumulative net incomes are negative throughout the period for Scenario I, and positive by the 1995 - 1999 period for Scenario 2 (HK$304 million) and Scenario 3 (HK$521 million).

HKCC expects telecommunications breakeven (before interest and tax) to occur in 1997 but does not describe net income assumptions in its proposal.

G.

MEETING THE GOVERNMENT'S OBJECTIVES

Both HKCC and HCV would appear to be able to meet the Government's objectives for the cable TV and telecommunications project.

Both HKCC and HCV can provide a range of high quality programming to entertain, enlighten and educate the people of Hong Kong.

Arthur D Little

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