consumer;
CONFIDENTIAL
b) introducing additional competition into international and domestic services, in a manner equitable to Hong Kong Telecom. In the case of domestic services, this should give a reasonable opportunity for an alternative network with right of interconnection to the existing network on reasonable terms and/or for service providers to have access to the existing network on reasonable terms to both parties.
4. This was the middle course between Booz Allen's extreme options of immediate full liberalisation (which would have yielded greatest economic benefit but at the price of tearing up Telecom's two franchises) and the status quo. ExCo have also agreed that there is no wish on the part of HKG to terminate existing franchises before their expiry,
and that tariff reductions would make it easier to stave off
pressure for unilateral termination, particularly of the international franchises. The current position is that ExCo are in the process of agreeing a negotiating brief for the HKG to use with HK Telecom in seeking the changes in
para 3 above.
Subscription Television
5. The Hong Kong Government's policy on subscription television is also under review. The review was begun in early 1991 following the collapse of Hong Kong Cable
Communications Limited (HKCC), which had in 1989 been granted the franchise to operate a view subscription Cable TV system. The review should be completed by the end of the
year.
6.
Hong Kong's current thinking is not to require that a particular technology be used for the delivery of TV services. Cable or microwave technology or a combination of both could be used. Hong Kong also plan to drop their
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