TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 124

CONFIDENTIAL

Annex C

HONG KONG TELECOM COMMENTS ON BAH REPORT AND

PROPOSAL ON FUTURE TELECOMMUNICATIONS POLICY FOR HONG KONG

The

commissioned Government

&

Booz, Allen Hong Kong Hamilton (BAH) to review Hong Kong's telecommunications policy and recommend a future direction for regulation of the telecommunications industry. In its report submitted to the Economic Services Branch in May this year, suggested

policy options consideration:-

1.

2.

3.

three

for

BAH

Government

To maintain the current regulatory environment with

modifications

these

some

(though the

nature of

modifications was not specified by BAH).

To terminate unilaterally, now, the existing Hong Kong Telecom franchise agreements covering both domestic and international telephony.

То

honour Hong Kong Telecom's existing franchise

until they expire, agreements

and then permit additional operators for both local and international telephone services. Meanwhile, the Government would consider

to further liberalise and

opportunities

restructure Hong Kong's telecommunications services by taking a number of actions, which include:-

Requiring reductions in international tariffs

Allowing private circuit bypass and simple data and fax resale

Requiring Hong Kong Telephone (HKT) to unbundle its services and to sell dark fibre

Permitting direct interconnection of PMRS to Hong Kong Telecom International (HKTI).

1

CONFIDENTIAL