TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 131

CONFIDENTIAL

Continue to open up the Market for all Non-franchised Services to Ensure Wide Service Choice and Competitive Prices for Consumers

Hong Kong Telecom supports the Government policy to liberalise the market for non-franchised value-added service, provided that acceptable interconnect arrangements can be made. The Government should also allow Hong Kong Telephone to participate in the market for non-franchised services to ensure consumers have ample choice at reasonable prices, as Hong Kong Telephone is often the only viable service provider because of its economies of scale and scope. Barring Hong Kong Telephone from offering these new services could simply make them unavailable to consumers, or available, only at significantly higher prices.

Provide a Fair Interconnect Arrangement to Ensure Effective Relationships Between Telecommunications Providers in Hong

Kong

that

An effective interconnect arrangement is an important issue to be decided in a multi-operator environment. A fair interconnect arrangement would ensure that network operators

have invested in developing telecommunications networks are reasonably compensated by other operators using these networks to

to provide their services. Such arrangement must address all major issues including, but not limited to, international

international and local

access charges, information sharing, dual customer interface, and maintaining the technical integrity of the

HKT network.

We would welcome an opportunity to discuss with the Government the details of

agreements.

interconnect arrangements and

CONFIDENTIAL