TNAG-2247-FCO40-3230-Business-interests-in-Hong-Kong-Cable-&-Wireless-1991 — Page 158

CONFIDENTIAL

EXHIBIT 9

COMPARISON OF NETWORK COSTS PER SUBSCRIBER Net present value of capital expenditures and costs of 9 years' maintenance £ per subscriber

1,400

1,300

1,200

1,100

ESTIMATE

Radio local only Fixed local only

Maintenance of existing fixed

1,000

900

800

700

600

500

400

300

Year 1

Year 2 Year 3

Year 4

Year 5 Year 6 Year 7

Year 8

Year 9

Year 10

Assumptions: 87 sq km area with 120,060 single line subscribers evenly distributed; 732 km of duct; 1.5% annual increase in

labor costs; 15% annual decrease in technology costs

Note: Estimates are sensitive to density and labor cost assumptions ⚫

Source: McKinsey model

McKinsey & Company, Inc.

FIDENTIAL