PUBLIC REACTION
15
merger
There has already been some press interest in the and the labour unrest. The general public is unlikely to be interested in the merger plan itself. The public will expect strict monitoring by Government of the details of the reorganisation to ensure that consumers' interests are protected. Because of the large scale of the lay-off exercise, further interest will be generated. Concern will also be expressed on the level of charges with the lapse of Telco's Scheme of Control agreement on 31 March 1991.
16
The financial community is likely to welcome the development as an efficiency improvement measure that should increase the group's profitability. Other main players in the telecommunication sector will be concerned that competition may not continue to be conducted on a fair basis, given the combined benefits enjoyed by the Group arising from the exclusive rights of Telco and the licence of HKTI.
PUBLICITY
17
HK Telecom intend to announce the reorganisation on 27 March 1991. As we expect media enquiries and concern over subject we propose to issue a press release on the same
This will emphasize that -
the
day.
(a)
(b)
the proposed integration of certain functions of Telco and HKTI is basically a matter for the companies concerned;
Government has taken steps to satisfy itself that its ability to regulate the two companies under the Telephone Ordinance and exclusive licence will not be adversely affected.
HKTI's
In
response to enquiries about the expiry of Telco's Scheme of Control agreement, we will stress that Government approval will still be required before Telco can raise its charges.
(The Secretary for Economic Services, Mrs A. CHAN, the Postmaster General, Mr D.S.W. WONG, Principal Assistant Secretary (Economic Services), Mr A.J. DEEPROSE, and Assistant Commissioner (Labour), Mr S.Y. MAK will attend for this item.)
22 March 1991
(C/EXCO/REORG)
No comments yet.
Private notes are available after approval.