TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 150

CONFIDENTIAL

}

SUMMARY OF TELECOMMUNICATIONS COMPETITION IN HONG KONG (CONTINUED)

TYPE OF SERVICE NATURE OF COMPETITION

VALUE-ADDED

Severe competition

Moderate or indirect competition

Little or no competition

MAIN COMPETITORS

EXTENT OF

COMPETITION

--

- Text-based

services (e.g., electronic mail, text-to-fax)

Video-based

Direct competition

- 3 main competitors; market share split evenly among top players

- Top 3 players compete in or will soon have the capability to compete in

all text-based services

4 key buying factors (price, product features, support, international reach of network)

- Direct competition

services (i.e., videotext)

-

Graphic-based services

•

Enhanced fax

Telex refile

3 key buying factors (price, speed of retrieving and manipulating information, and extent of up-to-date information)

- HKTCSL provides a broad range of services and competes with more

specialized information providers

Direct competition among 3 fax-to-fax networks; market share split evenly

- New market; competitors just emerging

Price is key buying factor

Indirect competition from a PC-to-fax network (a free service to "Datapak" subscribers)

- New market; competition emerging

· HKT CSL

- GEISCO

INET (Hutchison)

- HKT CSL

- First Data

Financial Telecom TeleQuote

Stock Market Channel

Fax-to-fax providers

- HKT CSL

-

Swift Global Constant Comm PC-to-fax network

Hong Kong Telephone

HKT CSL Possibly AT&T in near future

Source: Literature; Hong Kong Telecom

McKinsey&Company, Inc.

CONFIDENTIAL

о

:

Page 150Page 151

COPP