TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 122

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Step 1:

Step 2:

CONFIDENTIAL

INCREMENTAL TELECOMMUNICATIONS LIBERALISATION

Annex B

Allow Mobile Operators Direct Interconnection with HKTI

Currently

mobile telephone service operators (e.g. cellular radiotelephone operators at present, and Telepoint (CT2) operators from later this year) have to route their international traffic through Telco's network at a cost of 9cts/min. The mobile operators also pay HKTI the full international telephone charges for that traffic. Under its revenue-sharing agreement with HKTI, Telco receives 40% of the international charge revenue for international traffic originated by the mobile operators.

Other international carriers reward mobile operators for originating traffic through direct interconnect arrangements similar to the ones they have with the fixed domestic network.

interconnect

to

BAH recommend that mobile operators be allowed

directly with HKTI's international gateway, thereby removing the current requirement to pay an interconnection charge

to Telco, on similar revenue sharing terms to those between Telco and HKTI.

This would create the opportunity for mobile operators to offer international telephone charge discounts in competing for customers.

Allow the Self-provision of Private Circuits

Under item (1) of the first schedule to its licence, HKTI has the exclusive right to provide private cicuits between fixed points except to the extent that the Governor-in-Council may otherwise direct in writing.

Several companies have already been licensed to provide own international private circuits following

written

their suitable

Governor-in-Council. and Hutchvision.

directions

by

the The companies are: CLP, AsiaSat,

BAH recommend that any company wishing to establish its Own international point to point private circuits should be granted an exemption from HKTI's current exclusive rights over the provision of such circuits.

This development would represent a significant enhancement of Hong Kong's attractiveness as a regional base for multinational companies.

CONFIDENTIAL

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