CONFIDENTIAL
Moreover,
a 13% tariff cut for all international traffic would further exacerbate Hong Kong's already large balance- of-payments deficit (projected at about $1.4 billion in 1991-92), as a sudden unilateral price drop in Hong Kong would increase price arbitrage by callers in countries with high international rates. Furthermore, as some of the international routes
routes have high accounting rates, a 13% reduction would cause HKTI to lose money on each outgoing call to countries such as China, Japan, and Indonesia.
However, Hong
Hong Kong Telecom is prepared to explore the general concept of rebalancing international and local tariffs and to discuss its current plans for special discount packages and plan for future reductions in IDD charges.
Private Circuit Bypass of International Gateway ›
Item (1) of the First Schedule to HKTI'S licence was introduced to allow exceptional applications, such as special diplomatic circuits.
We believe that such exceptions should not be construed as a basis for allowing any private users to bypass HKTI'S international facilities, as it would clearly violate the letter and spirit of HKTI's exclusive franchise agreement.
Simple International Data and Fax Resale
We are ready to discuss with Government the ramifications of extending the scope of liberalisation of international leased circuits and associated interconnect issues.
HKT to Lease Dark Fibre
HKT would be willing to discuss with Government proposal to provide dark fibre to customers for specific applications not readily satisfied by other service offerings.
CONFIDENTIAL
No comments yet.
Private notes are available after approval.